Bank of Uganda Cuts Lending Rate to 9.5%, Lowest in Six Years

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Uganda’s apex bank, Bank of Uganda, has reduced the Central Bank Rate (CBR) from 10 to 9.5 percent in a bid to stimulate the economy and boost private sector lending.

The reduction is the lowest Uganda has seen since mid-2011 and signals intent on the part of the government and economic policy makers to stimulate the country’s economy by targeting stabilisation of the market using short-term interest rates.

“Given that the annual inflation forecast is to remain around the medium-term target of 5 percent and economic activity is slowly gaining momentum, a cautious easing of monetary policy is warranted to boost private sector credit growth and to strengthen the economic growth momentum,” the central bank Governor, Mr Emmanuel Tumusiime-Mutebile, said.

 

 

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