Uganda’s Central Bank has raised its benchmark policy rate by one percent to 8.5 percent in a radical move. This was occasioned by panic amidst surging inflation levels and increased pressure exerted by the US dollar against the local currency as a result of spikes in interest rates registered by developed economies.

Uganda's central bank on Thursday announced that it was increasing the Central Bank Rate (CBR) to 7.5 percent from 6.5 percent to control the rising inflation.

Uganda's central bank cut its benchmark interest rate for the fourth time in the current monetary easing cycle, saying the economic recovery still requires monetary policy support and inflation will likely remain below the target in the near term with little space for fiscal policy to respond to "fragile economic growth."

Uganda’s Central Bank kept its benchmark policy rate unchanged at seven percent Wednesday in a strategic move that promises stable lending rates amidst increased credit default levels and renewed strength in the value of the Uganda shilling against the US dollar.