The Bank of Uganda (BoU) raised its key rate for the third consecutive month today (August 10) from 14.5% to 16% – meaning it has now been raised by 500 basis points since April in an attempt to head off "elevated risks" to the inflation outlook.
Two of the key risks identified by the central bank are the speed with which a recent depreciation in its currency feeds through to the real economy, and how the exchange rate develops in the coming months.
The Ugandan shilling has fallen by 35% against
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