Tight Monetary Policy To Continue As Inflation Soars

BMI View: In the face of rising inflation, the Bank of Uganda continues to employ an aggressively hawkish stance, hiking its benchmark interest rate a further 300bps, to 23.00%, at its meeting in November. We expect inflation to be elevated over the medium term due to base effects, although there are some indications that price growth nearing a peak. Monetary policy will remain tight in response.

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