The Bank of Uganda has held its benchmark lending rate at 9 percent, citing balanced risks to inflation and the need to maintain an accommodative monetary stance to support growth.
Uganda’s central bank also kept its 2019/2020 economic growth forecast of 5.5 to 6 percent, while expects it to accelerate to 6.3 percent in the medium term, though below the estimate of potential growth of 6.5 percent.
However, the Governor of the Bank, Professor Emmanuel Mutebile expressed concerns over export weakness, amid risks related to the recent Coronavirus (COVID-19) outbreak in China and agricultural production constraints due to uncertain weather patterns and a massive invasion of desert locusts.
