By Elias Biryabarema
KAMPALA (Reuters) – The Bank of Uganda said on Tuesday it had raised its key lending rate to 8.5% from 7.5% to help tame inflation that rose to 6.8% last month, a five-year high.
The central bank announced the decision after a special sitting of its monetary policy committee (MPC), taking the key rate to its highest since early 2020.
Prices in Uganda have climbed for items including fuel, cooking oil, wheat and soap, triggering public protests.
The government of president Yoweri Museveni has blamed the price rises on the war in Ukraine and the coronavirus pandemic, shrugging off demands from opposition leaders for relief measures.
(Reporting by Elias Biryabarema; Writing by Hereward Holland; Editing by Alexander Winning, James Macharia Chege)
