The Bank of Uganda has raised its Central Bank Rate (CBR) from 9.75% to 12% following an emergency monetary policy meeting held on October 14, 2026, as it moves to contain rising inflation risks.
The 2.25-percentage-point increase comes amid higher fuel prices, a weakening Uganda shilling and growing pressure on the cost of living.
The central bank had earlier raised the Cash Reserve Requirement to 13.5%, effective September 24, in a move aimed at reducing excess liquidity in the banking system.
The shilling has reportedly lost about 12% of its value against the US dollar since the beginning of 2026, while headline inflation rose to 4.6% in September.
The latest rate hike signals a tighter monetary policy stance as the central bank seeks to curb inflation and stabilise the economy. Higher interest rates can also increase borrowing costs for businesses and individuals.
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