Bank of Uganda has held the Central Bank Rate (CBR) at 9.7%, pointing to easing inflation and strengthening economic activity as signs of growing stability in the country’s monetary environment.
The decision was reachedby Governor Micheal Atingi-Ego during the Monetary Policy Committee meeting held on 10 November 2025, where the central bank reviewed domestic and global economic conditions before opting to hold the benchmark lending rate steady.
According to the bank’s assessment, headline inflation slowed to 3.4% in October 2025, down from 4.0% in September, signalling reduced price pressures across the economy. Core inflation followed a similar trend, also settling at 3.4%.
The easing inflation was partly driven by a reduction in food crop inflation, which fell from 7.4% to 6.1% over the same period, supported by improved weather conditions that boosted supply and stabilised food markets.
Uganda’s broader economic performance has also strengthened. Real GDP growth reached 6.3% in the 2024/25 financial year, a marginal rise from 6.1% recorded in the prior year. The central bank projects continued expansion, with growth expected to range between 6.5% and 7.0% in 2025/26.
However, while domestic conditions show progress, the bank highlighted potential vulnerabilities stemming from the global economic landscape. Risks including exchange rate volatility, external economic uncertainties and possible changes in weather patterns remain key considerations for the country’s inflation and growth trajectory.
The decision to retain the CBR is expected to provide stability for borrowers and lenders as inflation remains within target and economic momentum continues.