BoU cuts key interest rate as inflation risks subside

Kampala, Uganda | THE INDEPENDENT | Uganda’s central bank reduced its key lending rate by 25 basis points to 10.00% on August.07, saying inflation risks had eased somewhat and it was appropriate to reduce the degree of monetary policy restrictiveness.

The decision by the Bank of Uganda comes despite a slight increase in year-on-year inflation since May. Inflation reached 4.0% year on year in July, but it is still below the central bank’s medium-term target of 5%.