The Bank of Uganda lifted its benchmark interest rate by 50 bps to 9% during a meeting held on August 12th 2022, to try to counter rampant inflation and boost the shilling. The annual headline inflation and core inflation rose to an over 6-1/2-year high of 7.9% and a near six-year high of 6.3% in July of 2022, from 6.8% and 5.5% in June, above the bank's target of 5%. Policymakers noted that the economy continued to face strong cost-push inflation pressures from the external environment, dry weather conditions, and exchange rate depreciation amid weak demand. Headline Inflation is expected to remain in the range of 7%-7.4% in 2022. Meanwhile, the bank cut this year's economic growth forecast to 2.5% to 3%, from a previous forecast of 4.5% to 5%, reflecting higher costs of production linked to fuel and transportation. The economy should gain steam in 2023, rising between 5-6% in 2023, in part supported by public investment and recovery in demand as inflationary pressures begin to wane. source: Bank of Uganda
Interest Rate in Uganda averaged 11.43 percent from 2011 until 2022, reaching an all time high of 23 percent in November of 2011 and a record low of 6.50 percent in June of 2021. This page provides the latest reported value for - Uganda Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Uganda Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2022.
Interest Rate in Uganda is expected to be 9.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Uganda Interest Rate is projected to trend around 10.00 percent in 2023 and 8.50 percent in 2024, according to our econometric models.