The Bank of Uganda has once again chosen stability over speculation, keeping the Central Bank Rate unchanged at 9.75 percent in its November Monetary Policy Statement. With the 2026 general elections drawing closer, the decision is being seen as a strong signal of confidence in the country’s economic health and its ability to weather both domestic and global pressures.

Governor Michael Atingi-Ego announced the decision in Kampala, emphasizing that the Ugandan economy remains on solid footing, supported by easing inflation and a firm Ugandan shilling. According to the governor, headline inflation slowed to 3.4 percent in October from 4.0 percent in September, while core inflation remained steady at the same level. Both figures are comfortably below the central bank’s 5 percent target, a clear indication, he said, that policy coordination between the Bank and the government is working. “We continue to witness a stable macroeconomic environment supported by prudent fiscal management, lower fuel prices, and a stronger shilling,” Atingi-Ego noted.

The decision to maintain the lending rate has been largely welcomed by analysts, who see it as a calculated move to sustain economic growth without stoking inflationary pressure. By keeping borrowing costs steady, the Bank is allowing businesses and consumers to plan with confidence while maintaining a delicate balance between price control and growth. The Bank projects core inflation to average between 4.0 and 4.5 percent in the 2025/26 financial year, a range that suggests continued price stability as Uganda heads into an important political season.

Behind these numbers lies a broader story of resilience. Uganda’s economy grew by 6.3 percent in the 2024/25 financial year, up from 6.1 percent the previous year, fueled by a strong performance in agriculture, manufacturing, and household consumption. The Bank expects growth to climb even higher—to between 6.5 and 7 percent this year, and to about 8 percent over the medium term—as major sectors gain momentum and government infrastructure projects continue to bear fruit. Atingi-Ego described the growth trend as “evidence of the economy’s growing vibrancy and structural improvement,” citing both private investment and steady agricultural output as key drivers.

On the monetary front, the Bank maintained other key rates to ensure liquidity and support private sector credit. The rediscount rate remains at 12.75 percent, while the bank rate stays at 13.75 percent, within a policy band of ±2 percentage points. These figures might seem abstract, but their effect is tangible, by keeping credit conditions stable, the central bank is helping businesses access affordable loans, supporting investment, and preserving consumer spending power.

Lower inflation has also brought a measure of relief to ordinary Ugandans. Food crop inflation eased to 6.1 percent in October, largely thanks to good harvests and steady supply in most regions. Meanwhile, prices for essential goods such as education, housing, and utilities remained relatively stable. For households that have spent much of the past few years coping with rising costs, this stability is a welcome development. “Families are finally feeling some breathing room,” noted one economic analyst. “While incomes haven’t risen dramatically, at least prices are not running away from them.”

The Bank’s leadership emphasized that the institution’s top priority remains achieving a balance between economic growth and price stability, especially during what could be a politically sensitive period. As the 2026 elections approach, concerns about government spending, private sector confidence, and investor sentiment are expected to intensify. However, Atingi-Ego struck a confident tone, saying the Bank’s policy stance is designed to ensure that Uganda remains economically resilient and well-positioned for long-term prosperity.

Adding to that optimism, an international credit ratings agency recently upgraded Uganda’s economic outlook, citing stronger investor confidence and ongoing reforms in agriculture, oil, and infrastructure. The rating boost, coupled with a stable monetary policy, is expected to reinforce Uganda’s attractiveness to both domestic and foreign investors. “Our policy consistency has helped sustain confidence among investors, businesses, and households,” the governor said. “We believe that this path of stability and prudence is the best guarantee of future prosperity.”

As the nation edges closer to the 2026 elections, the message from the central bank is clear: steady hands at the wheel. While political noise is bound to rise, the Bank of Uganda appears determined to keep its focus on the fundamentals, managing inflation, supporting growth, and preserving the trust of the Ugandan people. For now, with inflation under control, growth on the rise, and confidence returning to the markets, Uganda’s economy seems poised to enter the next chapter with measured optimism and economic discipline at its core.