Uganda’s central bank lowered its key interest rate by 50 bps to 9.5%, marking the first cut in over two years. This decision comes in response to the faster-than-expected decline in inflation, which dropped to 3.9% YoY in July from 10.4% in January, well below the bank’s 5% target. Both headline and core inflation reached 16-month lows in July. Despite global financial tightening, Uganda’s economy has outperformed many counterparts, aided by favorable weather and better harvests. Economic growth projections are between 5-6% for the year ending in June. Additionally, reports indicate that undisbursed loans at the end of December reached USD 4.81 bln, with significant contributions from the World Bank, IMF, and AfDB.