Bank of Uganda cuts rate as inflation outlook improves

View of Kampala. Photo: kousek_cz

In an attempt to boost growth and support the currency, the Bank of Uganda judged further "cautious easing" of monetary policy was warranted at its latest meeting, on February 15.

The central bank's monetary policy committee (MPC) reduced the policy rate by 50 basis points to 11.5%, although it is still keeping a close eye on inflation. The central bank's short-term forecasts indicate that inflation will temporarily increase but remain within the target band of 5% plus or minus three percentage