Business

BoU Retains Commercial Bank Lending Rate At 21%

cost http://chesapeakecatsanddogs.org/wp-content/plugins/contact-form-7/includes/submission.php geneva; font-size: small;”>Governor Prof. Emmanuel Tumusiime-Mutebile, adiposity Governor BoU told press Monday morning:

web geneva;”>“Although inflation is on a downward path, the risks to the inflation objective have risen, in particular because of the developments in the oil price, the exchange rate and food crop prices,” the Governor told the press while releasing the Monetary Policy Statement for April 2012.

“The Bank of Uganda still aims to reduce annual inflation to single digits by the end of this calendar year and to around 5 percent by mid 2013 and it will set its monetary policy to achieve this objective,” he further stated.

Mutebile was issuing the Monetary Policy Statement for April 2012.

The Central Bank was widely expected to reduce the lending rate considering that Uganda’s annual headline inflation rate for the year ending March 2012 declined to 21.2% from 25.7% recorded for the year ended February 2012, according to figures released Friday by the Uganda Bureau of Statistics.

Food Crops registered an annual inflation rate of 10.1% for the year ending March 2012 compared to 21.4% registered for the year ended February 2012.

The annual core (underlying) inflation rate, which excludes food crops, fuel, electricity and metered water declined to 23.6% for the year ending March 2012 compared to 26.7% recorded for the year ended February 2012.

Similarly, annual energy, fuel and utilities (EFU) inflation rate declined to 20.2% for the year ending March 2012 compared to 23.1% for the year ended February 2012.

The annual food inflation dropped to 15.4% for the year ending March 2012 from 27.6% registered in February 2012. Similarly, the Non-food prices inflation declined to 23.8% for the year ending March 2012 from 24.3% in February 2012.

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