Bank of Uganda Central Bank Rate (CBR) – now 12% (October 2026)

The Central Bank Rate (CBR) is the Bank of Uganda's main interest rate. It guides how much banks charge for loans and pay on savings.

Current Central Bank Rate

Set at an emergency Monetary Policy Committee meeting on 14 October 2026, up from 9.75% – a 2.25 percentage point jump, the biggest single increase since 2011.

Why did Bank of Uganda raise rates?

• The shilling fell sharply – past 4,000 per US dollar in early October and briefly to 4,500 on 23 October, its weakest in 33 years.
• Higher energy prices linked to conflict in the Middle East.
• Inflation rose to 5.8% in October 2026 (from 4.6% in September), and BoU expects 7–7.5% over the next year.

What it means for you

• Loans: expect bank lending rates to rise. Before the hike, the average shilling lending rate was already about 18.3% (April 2026).
• Savings & fixed deposits: banks may offer better rates – negotiate.
• Treasury bills and bonds: yields jumped. A 2-year bond cleared at 16% on 28 October 2026. See how to buy Treasury bills.

CBR history (recent)

The next scheduled MPC decision is expected in November 2026 – check bou.or.ug.

Frequently asked questions

What is the current CBR in Uganda?

12% since 14 October 2026.

Does the CBR affect my loan?

Yes, especially variable-rate loans. Banks usually adjust lending rates after CBR changes.