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The Central Bank of Uganda kept its Benchmark Lending Rate at 10%

Officials anticipated inflation would drop to reach its target by the end of the year despite a January uptick that it believed would be transitory. It was the second time in a row that the Bank of Uganda held its policy rate steady, as deputy governor Michael Atingi-Ego revealed at a press conference. In order to combat inflation, rates were hiked by 350 basis points last year. Inflation increased to 10.4% in January from 10.2% in December, but Mr. Atingi-Ego predicted core inflation would fall to the five percent objective by the end of 2023. He noted that the possible impact of global financial circumstances on the value of the Ugandan shilling and rising food and energy costs are risks to the inflation outlook.