Stephen Kaboyo, the managing director for Alpha Capital Partners and former Bank of Uganda's director of currency stability has supported the central bank's move to leave the February central bank rate unchanged at 12%.

"It is a wise decision," he said in a Feb. 4 statement, adding that the central bank is in a cautious mode, pleased to have navigated through the earlier turbulent economy.

"The message is that it is still tricky to put the foot to the floor on the gas again when the current account deficit remains large," Kaboyo said. He added that Bank of Uganda's approach is to build the confidence gradually by applying more consistent and less risky monetary policy.

On its Feb. 4 press conference, the central bank announced it had kept the CBR at 12% for the last three months, because inflationary pressures have been somewhat contained.

The country's headline inflation has remained in between 4% and 5.5% for the last three months, with experts saying the economy could grow fairly well with such a stable inflationary trend.

The economy is expected to grow at over 5% at the end of the current (2012/13) financial year from 3.2% recorded a year earlier.