Business

Business Community Awaits New CBR As Inflation Soars

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tadalafil http://colombiareports.com/wp-includes/class-wp-site-query.php geneva; font-size: small;”>The Central Bank maintained its CBR at 11 percent during the month of August 2013.


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However, according to the Uganda Bureau of Statistics (UBOS), Monthly Headline Inflation for the month of August increased by 2.6 percent from the 0.6 percent increase recorded in July 2013, the highest since the year begun.


UBOS attribute this to the recent drought that led to a sharp increase in food prices.


The UBOS statement also said annual food crops inflation rate rose to 13 percent from -0.3 percent recorded for the year ended July 2013.


The Consumer Price Index also showed that annual core inflation (which BoU targets through monetary policy) rose to 6.6 percent from 6.4 percent for same period.


With UBOS data showing annual headline inflation rising to 7.3 percent for the year ended August 2013 from 5.1 percent for July 2013 could force the Central Bank to adjust the CBR accordingly.


The CBR is used to guide short-term inter-bank lending rates, thereby influencing the rate at which commercial banks borrow from each other.


Governor Emmanuel Mutebile Tumusiime will also issue the Monetary Policy Statement for September 2013 on Wednesday.


In August, Mutebile cited a decline in lending rates from 27 percent last year to 22.6 percent in June 2013, which he said are expected to spur private sector growth.

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