Bank of Uganda has maintained the Central Bank Rate high at 10.3% for the next two months, following a rise in inflation.
The CBR is an indicative interest rate that the Central Bank uses to influence the cost of money, mainly aimed at regulating the amount of money in circulation.
At the end of May 2024, the Uganda Bureau of Statistics (UBoS) revealed that the annual headline inflation had risen to 3.6% mainly attributed to rising healthcare, education, and transportation service costs, along with higher prices for solid and liquid fuels.
While services inflation rose to a high 6.5%, the most price increases were recorded in electricity, fuel and utilities from 7.4 at the end of April to 9.5% by the end of May, largely due to high global prices and the depreciation of the shilling early in the month.
Meanwhile he BoU Monetary Policy Committee forecasts a lower inflation rate of between 5 and 5.4% for next financial year as the shilling is expected to be more stable.
