Uganda’s central bank held its benchmark rate at 9% saying subdued inflation provides room to shield the economy from global headwinds and increasing domestic needs for private-sector financing. The monetary policy stance remains accommodative and supportive, Governor Emmanuel Tumusiime-Mutebile told reporters in the capital, Kampala.

The central bank cut the key rate for the first time in more than a year in October to help boost the $34.2 billion East African economy. While the rate of expansion slowed to 5.4% in the second quarter from 5.6% in the first three months of 2019, the MPC still sees growth between 5.5% and 6% this year, the governor said.

The headline inflation rate rose to 3% in November, after hitting a 16-month low of 1.9% in September