Uganda: Central Bank Reduces Cbr to Lowest Level in Six Years

Jun 20, 2017 | The Monitor; All Africa

Bank of Uganda reduced Central Bank Rate (CBR) to 10 per cent, the lowest level it has ever done since the policy was introduced six years ago.

Determined to restore high economic growth rate, private sector credit and to bring about low lending rates, Bank of Uganda yesterday reduced Central Bank Rate (CBR) to 10 per cent, the lowest level it has ever done since the policy was introduced six years ago. The Bank of Uganda is optimistic that the reduction in the CBR from 11 per cent in April will also play a key role in controlling Uganda's inflation in single digit and foster stability in foreign exchange market. Presenting the monetary policy statement for June, the governor BoU, Mr Emmanuel Tumusiime Mutebile, said: "With domestic inflation pressures remaining subdued and given the continued weak growth prospects, the BoU judges that continued easing of monetary policy is appropriate." "This will be consistent with achieving the core inflation target of 5 per cent over the medium-term and will also support the recovery of real output in the economy," Mr Mutebile added. Read more on All Africa. Source: All Africa