Uganda central bank holds lending rate at 11pc

Uganda's central bank held its benchmark lending rate at 11 per cent, citing upward pressure on inflation from growing consumer demand and a weaker currency.

The Ugandan shilling has lost 10 per cent against the dollar this year after demand for imports rose, in line with the broader weakening of currencies across emerging markets.

"There may be further exchange rate depreciation pressures and food prices may rise by more than expected if harvests are poor next year," Governor Emmanuel Tumusiime-Mutebile said.

He reaffirmed an economic growth forecast of 5.5 per cent in the fiscal year ending in June 2015, up from 4.5 per cent in the 2013/14 fiscal year.