UGANDA REDUCES LENDING RATES TO 9.5%

Bank of Uganda reduces lending rates to 9.5%, to help boost private sector credit growth.

Aiming at stimulating the economy and boosting private sector lending, Uganda’s Apex bank, Bank of Uganda have reduced the Central Bank Rate (CBR) from 10% to 9.5%.

This reduction have been confirmed as the lowest the country have known since 2011, as the government targets stabilization of  its market using short term interest rates.

Here is a statement  from the Central Bank Governor, Mr Emmanuel Tumusiime-Mutebile;

“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.”