This archive report was first published on 9 December 2019.
On December 9, 2019, Uganda's central bank announced that it would maintain its key lending rate at 9.0%.
According to Governor Emmanuel Tumusiime-Mutebile, the decision was made in response to moderating economic growth, which was expected to be influenced by slowing global economic activity and domestic factors such as falling tourism and export earnings.
Despite the central bank's decision to slash its key rate by 100 basis points to 9% in October, Tumusiime-Mutebile noted that economic growth was now forecast at 5.5-6% for 2019 and 2020.
However, the governor also warned that a combination of persistent global geo-political tensions and uncertainty around trade policies, as well as softening domestic private sector investment spending, could generate headwinds to economic growth.
Annual headline inflation rose to 3% in November 2019, from 2.5% in October, while core inflation was projected to remain below a 5% target until the fourth quarter of 2020.
Heavy rains and flooding in Uganda had also led to widespread damage, including inundated cropland, destroyed homes, and collapsed bridges.
