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Uganda Holds Rate at Record-Low 9% to Balance Prices, Growth

KAMPALA (Capital Markets in Africa) – Uganda’s central bank maintained its key interest rate at a record low as it seeks to balance rising inflation and the need to encourage economic growth. The Monetary Policy Committee kept the benchmark rate at 9 percent, Governor Emmanuel Tumusiime-Mutebile told reporters Monday in the capital, Kampala. The annual inflation rate rose to 3.1 percent in July, the highest level in seven months, as energy prices soared. The weaker shilling and higher…

Uganda Keeps Key Rate at Record Low But Sees Prices Rising

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KAMPALA (Capital Markets in Africa) – Uganda’s central bank maintained its key interest rate at a record low but warned that inflation is set to accelerate from a 3 1/2-year low. The Monetary Policy Committee kept the benchmark rate at 9 percent, GovernorEmmanuel Tumusiime-Mutebile told reporters Monday in the capital, Kampala. Growth in consumer prices slowed to 1.7 percent in May, the weakest level since 2014, and the risks to the inflation outlook in Africa’s biggest coffee exporter…

Uganda Cuts Key Rate to Record Low to Boost Sluggish Growth

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KAMPALA (Capital Markets in Africa) – Uganda’s central bank reduced its benchmark rate to the lowest since it was introduced in 2011 to boost an economy that’s projected to grow at the slowest pace in four years. The Monetary Policy Committee cut the key rate by 100 basis points to 10 percent, Bank of Uganda Governor Emmanuel Tumusiime-Mutebile told reporters Monday in the capital, Kampala. The central bank has reduced the rate by 700 basis points since the start of last…

Assessing Uganda’s Fiscal and Monetary Policies in 2017 and beyond

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KAMPALA (Capital Markets in Africa) – Uganda’s rate of growth, though positive, has slowed over the past few years to average 4.5 percent in the last five years compared to 7.4 percent in the preceding period. Core inflation has been in line with the target of 5 percent over the medium term, with the few deviations from the target arising largely from supply side shocks caused by developments on the global scene as well as…

Bank of Uganda Slashes Benchmark Rate amid shrinking growth

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KAMPALA (Capital Markets in Africa) – The Bank of Uganda on Wednesday lowered the central bank rate by 50 basis points from 12 percent, set in December 2016, to 11.5 percent. The cut was necessary to “support economic activity”, according to the Monetary Policy Statement for February 2017. It is the sixth consecutive cut since the central bank started easing the policy rate in April 2016. “A further cautious easing of monetary policy is warranted to…

Uganda central bank cuts main rate to 13 pct, more easing seen

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KAMPALA (Capital Markets in Africa) – Uganda’s central bank cut its main interest rate on Tuesday to 13 percent from 14 percent to boost growth, and analysts said there was room for another reduction this year. Policymakers in the East African nation began cutting the benchmark rate in April, bringing it back down from the peak of 17 percent reached as the bank battled a surge in prices. Core inflation dipped to 4.8 percent last month…

Bank of Uganda cuts key rate amidst improved inflation outlook in April

Posted on by The Editorial Team

KAMPALA, Uganda, Capital Markets in Africa — Bank of Uganda (BOU) reduces its benchmark lending rate on Monday, because of the fact that demand pressures on inflation are more subdued than at the time of the last and indications are that domestic demand is likely to remain constrained. The central bank Governor Emmanuel Tumusiime-Mutebile informed a news conference the bank had dropped the rate to 16 percent from 17 percent previously, adding that real growth…