The Bank of Uganda has lowered its economic growth prediction for the 2026/27 financial year, revising it down to between 6% and 6.5% from a previous forecast of 7% to 7.5%. This adjustment comes as the central bank in Kampala, Uganda, increased the benchmark interest rate to 12%, a level not seen in two years. The move signifies a tightening of monetary policy in response to escalating costs and economic pressures. This rate hike is intended to manage inflation and stabilize the Ugandan economy. The decision reflects concerns about the country's economic outlook amidst a challenging global financial climate. This is the first interest rate increase in Uganda in two years. The Independent Uganda first reported this development.