Bank of Uganda (BoU) has in the December 2019 Monetary Policy Committee (MPC) meeting decided to keep the Central Bank Rate (CBR) at 9 percent.
The BoU’s high frequency indicator of economic activity, the Composite Index of Economic activity (CIEA), points to a moderation of economic activity since the beginning of 2019.
Overall, economic growth is projected to be in the range of 5.5-6.0 percent in 2019 and the pace sustained into 2020.
This projection remains subject to downside risks, mainly stemming from uncertainties in the global economy.
At the current level of the CBR, the stance of monetary policy remains accommodative and supportive of economic activity.
The MPC will continue to assess the balance of risks to domestic growth and inflation, to ensure that monetary policy decisions remain consistent with price stability while being supportive of sustained non-inflationary economic growth over the medium term.