Uganda, March 2 -- Bank of Uganda (BoU) will hold its policy rate at 9.50 percent at its next meeting in April, Fitch Solutions has projected.

The projections come at a time when BoU monetary policy committee held the policy rate at 9.50 percent for the third time on the bounce. During that time, inflation has picked up from 2.4 percent in October 2023 to 2.8 percent in January 2024 and 3.4 percent in February 2024. This was largely driven by statistical base effects and the lagged impact of exchange rate depreciation on import costs and services inflation.

"Over the coming months, we expect price growth to accelerate further, although we do not expect inflation to breach the BoU's 5.0 percent medium-term target," the projection shows....