BOU  RAISES BENCHMARK RATE TO 10%

Uganda’s central bank has announced that its policy rate will be raised to 10 percent, up from 9.5 percent, due to the depreciation of the country’s local currency and the expected rise in inflation.

Bank of Uganda Deputy Governor Michael Atingi-Ego, while releasing a monetary policy statement, said the depreciation, which started in November 2023 and became steeper in February 2024, was in part caused by the outflow of some offshore investors’ funds from the domestic market.