Uganda Leaves Key Rate at 9.75%

The Bank of Uganda kept its benchmark interest rate steady at 9.75% on August 12, 2025, marking the fourth consecutive meeting without a change, amid global economic uncertainties and rising inflation risks.

Both headline and core inflation declined slightly to 3.8% and 4.1% in July 2025, respectively, from 3.9% and 4.2% in June 2025.

Policymakers noted that annual headline and core inflation averaged 3.4% and 3.9% over the past twelve months, remaining below the medium-term target of 5%, but trade tariffs pose significant risks to the inflation outlook.

Meanwhile, the central bank highlighted the economy’s resilience, citing robust trade momentum and steady confidence levels.

Real GDP growth is expected to range between 6.0% and 6.5% in FY2025/26, with further strengthening projected over the medium term.