CENTRAL BANKS · UGANDA
Uganda’s central bank kept its main interest rate at 12% on Monday, 9 November, after headline inflation rose to 5.8% in October. The Bank of Uganda said it wants more time for its emergency rate increase of mid-October to take effect.
Key Facts
- Decision The Bank of Uganda, the central bank, held its benchmark rate (the Central Bank Rate) at 12% on Monday, 9 November 2026.
- Inflation Headline inflation, the yearly rise in consumer prices, hit 5.8% in October, up from 4.6% in September.
- Core inflation Core inflation, which excludes raw food and fuel, rose to 4.4% from 3.7%.
- Outlook The bank expects core inflation to average 6% to 6.5% over the next 12 months.
- Why a hold The bank wants more time for its 14 October emergency increase to take effect.
What the Central Bank Decided
The Monetary Policy Committee, the bank’s rate-setting panel, met on Monday, 9 November 2026, and left the Central Bank Rate at 12%. That rate is the benchmark that guides what banks charge for loans.
The hold follows an emergency increase of 2.25 percentage points, from 9.75% to 12%, on 14 October, which we covered in our report on the rate hike. Governor Michael Atingi-Ego said current financial conditions are tight enough.
Why Prices Are Rising Again
Headline inflation reached 5.8% in October, its highest since May 2023, up from 4.6% in September. Core inflation, which leaves out raw food and fuel, rose to 4.4% from 3.7%.
Oil and food prices and a weaker shilling have pushed prices higher, and we covered the currency’s earlier slide in our earlier report. The bank expects core inflation to average 6% to 6.5% over the next 12 months, above its medium-term target of 5%.
What It Means for US Readers
Investors in government bonds priced in Ugandan shillings face a central bank that is staying tight while prices climb. By our arithmetic, a 12% policy rate against 5.8% headline inflation leaves a gap of about 6 points.
Borrowing stays dear for Ugandan households and small firms, and importers who pay for fuel in dollars are most exposed to the shilling’s swings. For the wider picture, see who runs Uganda’s economy and our Uganda coverage.
What Is Not Known
The size and timing of the bank’s next move are not yet known. How the shilling and oil prices behave will decide whether inflation climbs further.
Frequently Asked Questions
What did the Bank of Uganda decide on 9 November?
It kept its Central Bank Rate at 12%. The decision follows the emergency increase from 9.75% on 14 October.
How high is inflation in Uganda?
Headline inflation was 5.8% in October, up from 4.6% in September. Core inflation was 4.4%, and the bank expects core inflation to average 6% to 6.5% over the next 12 months.
Why did Uganda’s central bank hold rather than raise rates?
The bank wants more time for the 14 October increase to take effect. Governor Michael Atingi-Ego said current financial conditions are tight enough.
Sources: Bank of Uganda Monetary Policy Committee statement read by Governor Michael Atingi-Ego, 9 November 2026 (Bank of Uganda monetary policy).
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