Uganda's central bank cut its benchmark interest rate for the third time in the current easing cycle, and for the second time this year, against a backdrop of declining inflation and another downward revision of its growth forecast this year.

Uganda's central bank lowered its benchmark interest rate for the second time in the current easing cycle and launched other monetary easing measures, including the purchase of government bonds, to ensure adequate access to credit and a normal functioning of financial markets during what it described as a "severe contraction" in economic activity from the COVID-19 pandemic.

Uganda's central bank lowered its Central Bank Rate (CBR) by 100 basis points to 9.0 percent, saying it believes "the benign inflation outlook provides room for a reduction in the policy rate to support economic growth."

Bank of Uganda has issued commercial banking licenses to two financial institutions, bringing the total num of commercial banks in Uganda to 26.