Bank of Uganda holds key interest rate at 12%

Monday 9th November 2026

By inAfrika Newsroom

The Bank of Uganda held its benchmark interest rate at 12% on 9 November, keeping in place the level set at an emergency meeting in October. Reuters reported that the central bank judged financial conditions sufficiently tight.

Les central bank had raised the rate from 9.75% on 14 October, a jump of 2.25 percentage points. Governor Michael Atingi-Ego said at the time that weakness in the shilling could add to inflation.

Uganda’s annual consumer inflation rose to 5.8% in October from 4.6% in September, the Uganda Bureau of Statistics said. The October figure measures the change in consumer prices over the 12 months through October.

The Central Bank Rate is the benchmark the Bank of Uganda uses to steer short-term interest rates. Commercial banks set their own rates for loans and deposits.

The Bank of Uganda also sold foreign currency in October to support the shilling, Reuters reported on 22 October. Dealers and the central bank had linked pressure on the currency to oil importers’ demand for foreign exchange.

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