BoU Slashes Lending Rate To 20%
Bank of Uganda has slightly eased its monetary policy stance and reduced the Central Bank Rate (CBR) to 20 percent in June 2012 from 21 percent in the previous month.
The Central Bank governor Prof. Emmanuel Tumusiime-Mutebile, while releasing the Monetary Policy Statement for June 2012 to the press on Friday explained that the decision was driven by improved short to medium term prospects for inflation.
The Uganda Bureau of Statistics (UBOS) monthly report released Thursday showed that annual headline inflation fell to 18.6 percent in May, down from 20 percent in April.
UBOS Macro-economics director Dr Chris Mukiza said a sustained increase in food supply and subdued aggregate demand in the economy had helped in curbing inflation.
“Last year around this time, prices were rapidly going up, however, this year prices are relatively low and as a result we are seeing the inflation rate consistently falling,” said Kwizera.
Ugandans have since been worried of borrowing from banks, fearing an increase in the lending rates.
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Updated on 2013-05-09 09:25
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