Uganda central bank holds rates, says price pressure from oil hasn’t spread

The rate was held at 9.75% for the eighth consecutive policy meeting in a row

Elias Biryabarema | Reuters News

Uganda’s central bank maintained its key lending rate on Thursday, saying higher oil prices had not triggered broader price pressures so far.

The rate was held at 9.75% for the eighth consecutive policy meeting in a row.

Headline inflation in the East African country rose to 4.0% year-on-year in July, up from 3.7% in the previous month.

“The current inflation data does not show a broader price pressure spreading through the economy as a result of the increase in the oil prices,” Governor Michael Atingi-Ego told a press conference.

The Bank of Uganda targets core inflation of 5% over the medium term.

Uganda’s economy remains resilient, Atingi-Ego said, with growth expected to rise to 7%-7.5% in the fiscal year that started in July from an estimated 6.4% last fiscal year.

(Additional reporting by Vincent Mumo Nzilani in Nairobi; Writing by George Obulutsa; Editing by Alexander Winning)

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