The Bank of Uganda kept its benchmark lending rate for the fourth consecutive time at 10% on June 18th 2019, saying that growth should strengthen to 6.3% in 2019 from 6.1% a year earlier. In May, headline inflation rate eased to 3.3% from 3.5% in the prior month and annual core inflation fell to 4.6% from 4.8% in April, moving away from the central bank's midpoint target of 5 percent. However, policymakers noted that escalating global trade tensions, local unfavourable weather and delays in infrastructure projects are the major risks to the economic outlook. Interest Rate in Uganda averaged 12.95 percent from 2011 until 2019, reaching an all time high of 23 percent in November of 2011 and a record low of 9 percent in February of 2018.
Interest Rate in Uganda is expected to be 10.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Uganda to stand at 9.50 in 12 months time. In the long-term, the Uganda Interest Rate is projected to trend around 8.75 percent in 2020, according to our econometric models.