KAMPALA Sep 25 (Reuters) - The Ugandan shilling was stable against the dollar on Tuesday, while traders said they were looking to a possible fall in the inflation rate and a cut in interest rates to determine the direction the currency could take. At 0832 GMT, commercial banks quoted the currency of Africa's leading coffee exporter at 2,520/2,530 to the dollar, unchanged from the previous day's close. The statistics office is scheduled to release this month's inflation data on Friday, and the central bank is to announce its policy rate early next week. "Recent trends in inflation are not expected to change ... and we are anticipating Bank of Uganda to shave about 100 basis points off the CBR (central bank rate)," said Faisal Bukenya, head of market-making at Barclays Bank. "This monetary policy outlook is keeping the shilling biased toward weakening." Policymakers since June have been unwinding a tight monetary policy stance, and the central bank has indicated it could cut rates further to return economic growth to its full potential. The successive cuts in rates so far have not put much pressure on the shilling, with the currency falling slightly since end-June, but market participants said a full recovery of credit flow in the medium term could lead to significant weakening of the currency. "The market is eyeing a weaker shilling because of the ongoing policy easing moves and the upswing in dollar demand by holiday shoppers that should start showing up soon," said Ahmed Kalule, trader at Bank of Africa.

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