Uganda Maintains Key Interest Rate in a Bid to Ease Inflation – Kenyan Wallstreet

Uganda’s central bank held its key lending rate at 10 per cent on Monday, saying it expected inflation would slow to hit its target by the end of the year despite a pick-up in January that it thought would be short-lived.

The decision, announced by the Bank of Uganda deputy governor Michael Atingi-Ego at a news conference, was the second time in a row the bank has kept its policy rate unchanged.

Last year it raised rates by 350 basis points to fight inflation.

Inflation was 10.4 per cent year-on-year in January from 10.2 per cent a month earlier, but Mr Atingi-Ego said core inflation was expected to decline to the five per cent target by the end of 2023.

Risks to the inflation outlook include the potential impact of international financial conditions on the Ugandan shilling exchange rate, and higher food and energy prices, he added.

“The current CBR (Central Bank Rate) would contain domestic demand pressures, while accommodating and supporting economic recovery,” Mr Atingi-Ego said.

Read also; Uganda Central Bank Requests Investors to Transfer April bonds.

Jay Ndungu

Jay is a computer scientist and journalist with a passion for the intersection of technology and society. He has a background in computer science, developing a deep understanding of the technical aspects of the industry, including programming languages and software development methodologies. Currently, He writes for Nairobi Times, covering a wide range of topics including technology, politics, sports, and entertainment. With his unique combination of technical knowledge and journalistic experience, Jay brings a unique perspective to the stories he covers, able to explain complex technical concepts in an easy-to-understand manner. His work is dedicated to bridge the gap between technology and society, and to make people more aware of the potential of technology to make the world a better place.

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