Bank of Uganda Holds Lending Rate at 12% Amid Inflation Warnings

The Bank of Uganda (BoU) has decided to keep its benchmark lending rate steady at 12 percent. Announced on Monday, November 9, 2026, by Governor Michael Atingi-Ego, the decision was reached during the Monetary Policy Committee meeting.

While the rate remains unchanged, the central bank issued warnings that inflation is expected to climb sharply over the upcoming year. Officials attribute the anticipated price pressures to rising global oil prices, a weakening local currency, and broader economic fallout from ongoing conflicts in the Middle East.

Despite these near-term inflationary risks, the central bank maintains a positive outlook for the country’s economic future. Over the medium term, economic growth is projected to strengthen significantly, averaging around 8 percent annually over the next five years.

This robust growth trajectory is expected to be driven by increased private investment, stronger export performance, and anticipated developments within Uganda’s oil sector. Furthermore, the continued implementation of the government’s Tenfold Growth Strategy is anticipated to provide a strong foundation for the national economy moving forward.

For more details on this monetary policy update, read the original report on the Daily Monitor.