BoU Maintains 23% Interest Rate


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doctor geneva;”>Governor BoU Prof. Emmanuel Tumusiime-Mutebile made the announcement today January 3 while releasing the Monthly Monetary Policy Statement for January 2012.

help geneva;”>Mutebile said although inflation had peaked, approved robust efforts were in place bring it to acceptable levels.

“There are now clear signs that inflation has peaked and we expect it to decline for most of 2012, he said.

“Furthermore the continued turbulence and vulnerability of global financial markets could also lead to depreciation pressures, as offshore investors in government securities exit the market,” he said.

“Bank of Uganda will therefore maintain the Central Bank Rate (CBR) at 23 percent in January 2012.”

The Central Bank has a medium-term inflation target of 5 percent.

Observers say more effort is needed to stem inflation that has paralysed the economy.


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