Uganda’s central bank maintained its key lending rate on Thursday, saying higher oil prices had not triggered broader price pressures so far.
The rate was held at 9.75% for the eighth consecutive policy meeting in a row.
Headline inflation in the East African country rose to 4.0% year-on-year in July, up from 3.7% in the previous month.
“The current inflation data does not show a broader price pressure spreading through the economy as a result of the increase in the oil prices,” Governor Michael Atingi-Ego told a press conference.
The Bank of Uganda targets core inflation of 5% over the medium term.
Uganda’s economy remains resilient, Atingi-Ego said, with growth expected to rise to 7%-7.5% in the fiscal year that started in July from an estimated 6.4% last fiscal year.
