The Bank of Uganda left its benchmark interest rate unchanged at a record low of 7% during its August 2020 meeting, after slashing it by 100bps in June, citing an extremely uncertain economic outlook largely because of the unpredictable intensity and duration of the Covid-19 pandemic. Policymakers said that domestic economic activity is estimated to have contracted by 3.2% in the second quarter, but it is expected to slowly recover amid the gradual easing of lockdown restrictions. Therefore, economic growth is seen at around 3-4% in 2020, before picking up to 5-6% in 2021, but remaining below its potential level until 2022. Meanwhile, the balance of risks to the inflation forecast are assessed to be on the upside with core inflation expected to rise above the 5% target within 12 months, reflecting the influence of containment measures particularly on public transport and increases in prices of imported consumer goods as a result of higher taxes to support import substitution.
Interest Rate in Uganda averaged 12.49 percent from 2011 until 2020, reaching an all time high of 23 percent in November of 2011 and a record low of 7 percent in June of 2020. This page provides the latest reported value for - Uganda Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Uganda Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020.
Interest Rate in Uganda is expected to be 6.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Uganda to stand at 5.00 in 12 months time. In the long-term, the Uganda Interest Rate is projected to trend around 6.00 percent in 2021 and 6.50 percent in 2022, according to our econometric models.