Uganda's central bank raised its key lending rate by 25 basis points to 10.25%, citing inflation risks and the need to anchor inflation around its medium-term target, its deputy governor said on Monday.

The decision is the second time in a row that the bank has raised rates, after a 50-basis-point hike in March that aimed to arrest a slide in the local shilling currency.

"Considering the persistent upside risks to inflation, the MPC (Monetary Policy Committee) deemed it necessary to tighten monetary policy further to anchor inflation around the medium-term target of 5%," Deputy Governor Michael Atingi-Ego told a virtual press conference.

 

(Reporting by Elias Biryabarema Additional reporting by Bhargav Acharya Writing by Hereward Holland Editing by Alexander Winning)