BoU Raises Interest Rate to 12% as Uganda Shilling Weakness Stokes Inflation

BoU raises interest rate to 12% as Uganda Shilling weakness stokes inflation

BoU tightens monetary policy as inflation risks mount

Bank of Uganda raises benchmark interest rate to 12% amid currency, inflation pressures

The Bank of Uganda (BoU) has raised its benchmark interest rate by 225 basis points to 12%, tightening monetary policy in response to the Ugandan shilling’s depreciation, worsening external balances, and rising inflation risks.

Staggering Economy! Bank Of Uganda Hikes Central Bank Rate To 12% Amid Inflation Risks

By Spy Uganda The Bank of Uganda (BoU) has sharply increased its benchmark lending rate from 9.75 percent to 12 percent, warning that rising global oil prices, pressure on the Ugandan shilling and escalating tensions in the Middle East could push inflation higher in the coming months. In a monetary policy statement issued on Wednesday,…

Bank of Uganda Raises Central Bank Rate to 12% in Emergency Move to Stem Shilling Slide and Rising Inflation

KAMPALA, October 14, 2026 — The Bank of Uganda (BoU) has sharply raised its Central Bank Rate (CBR) by 225 basis points to 12 percent from 9.75 percent following a special Monetary Policy Committee (MPC) meeting held today. The decision, the largest single hike in years and one that lifts borrowing costs to their highest […]

BoU raises CBR to 12% as inflation fears mount, cuts economic growth forecast

Bank of Uganda (BoU) has raised its benchmark interest rate from 9.75% to 12%, seeking to contain inflation as a weakening Shilling, rising fuel prices and worsening external conditions threaten Uganda’s economy. The 225-basis-point increase, announced after a special Monetary Policy Committee meeting on October 14, comes alongside a downgrade in the country’s economic growth forecast for FY2026/27 from 7.0–7.5% to 6.0–6.5%. The move could raise…