By Nicholas Bariyo
KAMPALA, Uganda--Uganda's central bank maintained its key lending rate at 9.75%, citing rising inflationary pressure and high oil prices amid sustained geopolitical uncertainty.
Uganda's headline inflation rate rose to 3.2% in January from 3.1% in December, driven by higher prices in energy and services. Bank of Uganda Governor Michael Atingi-Ego told reporters in Kampala that although the inflation rate remains below the central bank's medium-term target of 5%, geopolitical tensions and trade barriers pose risks to the inflation outlook for Africa's top coffee exporter and an upcoming oil producer.
"Risks to inflation outlook remain elevated, mainly due to heightened geopolitical tensions that could disrupt global supply chains," he said.
Write to Nicholas Bariyo at Nicholas.Bariyo@wsj.com
(END) Dow Jones Newswires
02-09-26 0508ET
