The Bank of Uganda has maintained the Central Bank Rate (CBR) at 12 per cent despite rising inflationary pressures and growing economic uncertainties.
The decision was announced by Governor Michael Atingi-Ego in the November 2026 Monetary Policy Statement issued on November 9.
The Monetary Policy Committee also widened the CBR band from ±2 to ±3 percentage points to support tight shilling liquidity.
The move comes as headline inflation increased to 5.8 per cent in October, up from 4.6 per cent in September, while core inflation rose to 4.4 per cent.
The Bank attributed the increase largely to energy and weather-related shocks, alongside depreciation of the Uganda shilling and higher international oil prices.
Over the next 12 months, headline inflation is projected to average between 7.5 and 8 per cent, while core inflation is expected to range between 6 and 6.5 per cent.
Meanwhile, Uganda’s economic growth forecast for the 2026/27 financial year has been revised downwards to between 5.5 and 6 per cent from the earlier projection of 6 to 6.5 per cent.
The revision reflects tighter financial conditions, geopolitical uncertainties, elevated global energy prices and the effects of earlier drought conditions.
However, the Bank projects stronger medium-term growth, averaging about 8 per cent over the next five years, supported by private investment, exports and developments in the oil sector.
The Bank says future monetary policy decisions will be guided by inflation trends, economic performance and developments in the global economy.
Below is the full Monetary Policy Statement:
