Bank of Uganda raises benchmark interest rate to 12% amid currency, inflation pressures

The Bank of Uganda (BoU) has raised its benchmark interest rate by 225 basis points to 12%, tightening monetary policy in response to the Ugandan shilling’s depreciation, worsening external balances, and rising inflation risks. The decision, taken at an emergency Monetary Policy Committee (MPC) meeting on October 14, 2026, marks the largest monthly policy-rate adjustment since October 2011 and takes Uganda’s benchmark rate to its highest level since December 2016.

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