Accordingly, the call money market was developed into primarily an inter-bank market, while encouraging other market participants to migrate towards collateralised segments of the market, thereby increasing overall market integrity.
The inflation outlook is favourable, with inflation projected to stabilize around the 5.0 per cent target in the medium term. Given the current inflation outlook, BoU has kept the policy rate on hold since October 2018. Low inflation protects the purchasing power of Ugandans, especially for the poor households.