Uganda on hold

The central bank (Bank of Uganda) left the policy rate at 7% today. It expects y/y growth to recover to 2% in Q3 after a lockdown-driven -6% print in Q2. Headline inflation is softening a touch, but core price growth, at 6.2% in September, is well above the 5% target, still on an upward trend, and limiting the prospect of further monetary policy easing over the medium term.