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The Bank of Uganda's decision on 14 October 2026 to raise the Central Bank Rate (CBR) from 9.75% to 12% deserves thoughtful public support. The 225-basis-point increase may make borrowing costlier, but the greater objective is to prevent a temporary external shock from becoming a prolonged domestic economic crisis. The shilling is more than a figure on a foreign-exchange board. It determines how much Ugandans pay for fuel, medicine, machinery, school supplies and other imported necessities. Protecting its purchasing power is ultimately about protecting households, business margins and national economic confidence. BoU's latest Monetary Policy Statement offers compelling evidence. Annual headline inflation increased from 4.1% in August to 4.
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