Three African central banks raised rates in October, with Uganda delivering most of a combined 350-basis-point increase as policymakers responded to inflation risks tied to currency weakness, fuel and external price pressures.
Uganda's 225-basis-point increase, Egypt's 100-basis-point move and Namibia's 25-basis-point rise totaled 350 basis points. The banks' statements pointed to different inflation channels: exchange-rate depreciation and fuel in Uganda, fuel-cost effects in Namibia, and external uncertainty and imported-price risks in Egypt.
On Oct. 14, the Bank of Uganda raised its Central Bank Rate from 9.75% to 12%. The bank said headline inflation stood at 4.6% in September, up from 4.1% in August, and forecast a rate of 7% to 7.5% over the next 12 months. It reported that the current-account deficit had expanded by US$1.4 billion to US$4.6 billion; separately, it warned that shilling depreciation pressures could add to inflation.
Uganda had also increased its cash reserve requirement from 11% to 13.5%, effective Sept. 24.
On Oct. 28, the Bank of Namibia said its Monetary Policy Committee had voted unanimously to raise its repo rate by 25 basis points to 7%. The bank said the move would help keep the Namibia dollar at parity with the South African rand and curb second-round price effects from high fuel costs. Annual inflation reached 5.4% in September, 1 percentage point above June. The bank forecast average inflation of 4.2% in 2026 and 4.0% in 2027, assuming a prolonged energy-price shock.
On Oct. 29, the Central Bank of Egypt raised its overnight deposit rate by 100 basis points to 20% and set its overnight lending rate at 21%. The decision followed September readings of 13.9% for annual headline inflation and 14.1% for core inflation. The bank said it aimed to anchor expectations and preserve the disinflation path, citing external uncertainty and the risk that global energy and commodity costs could push domestic prices higher.
Namibia's next monetary policy meeting is scheduled for Dec. 7-8.
