Uganda cuts main lending rate to 11%
April 12, 2017 | 5:33 pm| | | Start Conversation
Uganda’s central bank on Wednesday cut its benchmark lending rate to 11 per cent from 11.5 per cent.
The bank Governor, Emmanuel Tumusiime-Mutebile, told a news conference in Kampala the cut was due to core inflation, which would remain around the bank’s mid-term target over the next 12 months.
Tumusiime-Mutebile said there was scope to lower rates further to support flagging economic growth momentum.
“Given the weak economic performance in the first two quarters of the current financial year, the projected GDP growth of 4.5 per cent in 2016/17 is unlikely to be achieved,” he said.
The cut was the seventh in succession since last April as policymakers rein in borrowing costs from a peak of 17 per cent reached after a surge in inflation.
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