On 7 August 2024, the Bank of Uganda’s Monetary Policy Committee reduced the Central Bank Rate (CBR) by 25 basis points to 10.0%. This decision follows a moderation in domestic inflation, with annual headline and core inflation averaging below the medium-term target of 5%.
The stability of the exchange rate and favorable coffee export prices have contributed to this trend. Economic growth has recovered, with GDP growth averaging 6.7% year-on-year in the last two quarters of FY 2023/24. However, vulnerabilities remain, including potential geopolitical tensions and higher commodity prices.
The MPC deemed a cautious easing of monetary policy necessary to support inflation containment and economic growth.
Below is the detailed Monetary Policy Statement:
