KAMPALA (Reuters) -Uganda’s central bank raised its main lending rate by 1 percentage point to 10.0% on Thursday, citing a deterioration in the inflation outlook linked to a regional drought, weaker shilling and global economic factors.
The Bank of Uganda has now raised its Central Bank Rate by 3.5 percentage points this year to try to tame inflation, which hit its highest since 2012 in September at 10.0% year on year.
The central bank targets core inflation of 5% over the medium term.
Its deputy governor, Michael Atingi-Ego, told a news conference that the bank was determined to rein in inflation and “will continue to take the necessary measures to restore inflation to the target”.
At its last meeting in August the central bank signalled it could tighten monetary policy further if inflationary pressures persisted.
(Reporting by Elias BiryabaremaWriting by Alexander WinningEditing by James Macharia Chege, Kirsten Donovan)
