He notified that there is continuous reduction on excessive fluctuation in macroeconomic policies, low and stabilized inflation rates and fairly increased growth in output.
His remarks followed a recent ranking of the country’s economy by international economic rating agencies Standard and Poor and Fitch, which rated Uganda at B Stable and B+ respectively, earlier this month.
“Our role as Bank of Uganda has always been ensuring price stability, and moderating domestic demand in accordance with available resources, and that we have ably done,” Mutebile said.
“Despite of the previous year’s case where the country inflation rates shot to 7.3 and other very rare instances, we have managed to maintain the rate a low and rate of 5%. These fluctuations have often been caused by long droughts which sent prices of especially food crops souring.”
He said that the rates rankings indicated that the country’s economy was being ranked among countries with the best economic growth and macroeconomic stability. “We are positively progressing; and not just stable. Not only are our prices doing well but also broader macroeconomic policies,” the Bank of Uganda governor explained.
“This will certainly enhance our economy’s predictability, implying that any investor from out there will be more comfortable risking their capital to do business here, since they know almost exactly what government will do, in response to any of their actions, and that’s fantastic. We are on the right truck,” Mutebile added.
The rating is also expected to increase on dependability of Uganda government in the face of international financial institutions like World Bank, who are rest assured that by giving out a loan to the country their money will be repaid.
Mutebile also refuted rumors going around that government was aiming at drawing money from circulation.
“That would be dangerous of course. We as Central Bank only keep money out of circulation, and give it out in accordance with the available supply,” Mutebile said.
Bank of Uganda in 2011 introduced reforms in its monetary policy framework to meet the challenges of macroeconomic management particular the rapid growth and diversification of the financial system.
The reforms entailed the transition to an inflation targeting monetary policy framework. The reforms to the monetary policy framework were intended to strengthen implementation of Uganda’s medium term macroeconomic framework