KAMPALA (Reuters) – Uganda’s central bank reduced its key lending rate by 25 basis points to 10.00% on Wednesday, saying inflation risks had eased somewhat and it was appropriate to reduce the degree of monetary policy restrictiveness.
The decision by the Bank of Uganda comes despite a slight increase in year-on-year inflation since May.
Inflation reached 4.0% year on year in July, but it is still below the central bank’s medium-term target of 5%.
(Reporting by Elias Biryabarema; Writing by Bhargav Acharya; Editing by Alexander Winning)
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