The Bank of Uganda kept its benchmark interest rate steady at a record low of 7% during its October 2020 meeting, saying economic growth for the next 12 to 24 months was likely to remain modest. Policymakers noted that high-frequency indicators for economic activity point to a mild recovery in Q3 with an estimated growth of 2% from a sharp contraction of 6% in Q2. Still, the GDP is projected to contract in the range of 0.2% to 0.5% in 2020. The overall risks to the inflation outlook appear to be on the upside in the near term, amid cost pressures emanating from higher taxes on imported consumer and intermediate products and social distancing measures. The annual headline inflation eased to 4.5% in September 2020 from 4.6% in August, but annual core inflation edged up to 6.2% from 5.9% in the same period. Meanwhile, inflation is expected to be well contained over the medium-term. source: Bank of Uganda

Interest Rate in Uganda averaged 12.31 percent from 2011 until 2020, reaching an all time high of 23 percent in November of 2011 and a record low of 7 percent in June of 2020. This page provides the latest reported value for - Uganda Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Uganda Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on November of 2020.

Interest Rate in Uganda is expected to be 6.00 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 5.00 in 12 months time. In the long-term, the Uganda Interest Rate is projected to trend around 5.00 percent in 2021 and 6.50 percent in 2022, according to our econometric models.

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Uganda Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
7.00 7.00 23.00 7.00 2011 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-04-06 12:00 PM 8% 9% 9%
2020-06-08 10:00 AM 7% 8% 8%
2020-08-10 09:20 AM 7% 7% 6%
2020-10-22 09:40 AM 7% 7% 6%
2020-12-11 09:00 AM 7% 6%


News Stream
Uganda Leaves Key Interest Rate Steady at 7%
The Bank of Uganda kept its benchmark interest rate steady at a record low of 7% during its October 2020 meeting, saying economic growth for the next 12 to 24 months was likely to remain modest. Policymakers noted that high-frequency indicators for economic activity point to a mild recovery in Q3 with an estimated growth of 2% from a sharp contraction of 6% in Q2. Still, the GDP is projected to contract in the range of 0.2% to 0.5% in 2020. The overall risks to the inflation outlook appear to be on the upside in the near term, amid cost pressures emanating from higher taxes on imported consumer and intermediate products and social distancing measures. The annual headline inflation eased to 4.5% in September 2020 from 4.6% in August, but annual core inflation edged up to 6.2% from 5.9% in the same period. Meanwhile, inflation is expected to be well contained over the medium-term.
2020-10-22
Uganda Keeps Interest Rate Steady at 7%
The Bank of Uganda left its benchmark interest rate unchanged at a record low of 7% during its August 2020 meeting, after slashing it by 100bps in June, citing an extremely uncertain economic outlook largely because of the unpredictable intensity and duration of the Covid-19 pandemic. Policymakers said that domestic economic activity is estimated to have contracted by 3.2% in the second quarter, but it is expected to slowly recover amid the gradual easing of lockdown restrictions. Therefore, economic growth is seen at around 3-4% in 2020, before picking up to 5-6% in 2021, but remaining below its potential level until 2022. Meanwhile, the balance of risks to the inflation forecast are assessed to be on the upside with core inflation expected to rise above the 5% target within 12 months, reflecting the influence of containment measures particularly on public transport and increases in prices of imported consumer goods as a result of higher taxes to support import substitution.
2020-08-10
Uganda Cuts Key Rate to 7%
The Bank of Uganda cut its benchmark interest rate by 100bps to 7% on June 8th 2020, aiming to support the economy which has been battered by a coronavirus lockdown. It follows a similar 100bps cut in April and brings the borrowing cost to the lowest level since at least 2011.
2020-06-08
Uganda Trims Key Interest Rate to 8%
The Bank of Uganda lowered its benchmark lending rate to 8% during its April 2020 meeting, in a bid to cushion the coronavirus-induced deterioration in macroeconomic conditions and in order to ensure adequate access to credit and the normal functioning of financial markets Consequently, the country's economic growth is seen slowing drastically in the second half of 2019/2020 to 3-4% from a previous estimate of 6%. Policymakers added that although it is expected the GDP growth to gradually recover in the second half of 2020/2021, the emerging output gap is projected to persist until 2022. Meanwhile, inflationary pressures are expected to remain subdued, amid weaker domestic demand and lower external pressures in the face of the global downturn. Inflation is seen in the range of 2-3% in 2020, assuming that the COVID-19 pandemic is contained by June 2020 and the economy recovers gradually in the second half of 2020.
2020-04-06

Uganda Interest Rate
In Uganda, interest rates decisions are taken by the Bank of Uganda. The Bank of Uganda official interest rate is the central bank rate.