Uganda maintains its key lending rate at 9.75%, citing contained inflation but acknowledging external uncertainties that could affect the economic outlook, as stated by the Bank’s deputy governor.
Uganda’s central bank announced it has maintained its key lending rate at 9.75%. During a news conference, Bank of Uganda deputy governor Michael Atingi-Ego indicated that near-term inflation risks appear well-managed. However, he noted the economic outlook is clouded by greater uncertainty due to potential external pressures that could prompt inflation to rise more quickly than expected.
This announcement from the Bank of Uganda comes at a time when many economies face heightened challenges from global market fluctuations and geopolitical tensions. Central banks worldwide are tasked with balancing inflation control while fostering economic growth. The decision to hold the rate steady reflects an effort to provide stability amidst these complexities, as interest rates directly influence borrowing costs and consumer spending.
In conclusion, the Bank of Uganda’s decision to hold the key interest rate at 9.75% reflects a cautious monetary policy approach amidst uncertain external factors that could impact inflation. Monitoring future economic indicators and global developments will be crucial in shaping subsequent actions by the central bank.
Original Source: www.marketscreener.com
