By Sylvia Juuko
MARKET fundamentals have remained stable with economic growth within reach of an official forecast of 6.1% despite mixed sentiments in anticipation of the presidential and parliamentary elections’ results, an official of Bank of Uganda’s (BOU) research department has said.
“Aggregates we are seeing in terms of import and export expansion among others are broadly in line with attaining the growth target of 6.1%. Though there have been blips on inflation, it is due to drought. Underlying inflation is 5.4% so there is no risk for monetary policy in the medium term and the economy will expand in line with projections,” Charles Abuka said.
“Indicators over the last five months do not point to any instability in the market. On the contrary, the exchange rate has averaged 1,813.20, a spread of about sh10, which is on target,” Abuka said.
Addressing reporters during the monthly press briefing in Kampala on Wednesday, he said business had not slowed down in recent times.
“Exports have been in line with projections with evidence that actual values have increased while imports have also increased, which shows that business is going on as usual. Activity in the market does not reflect any concerns,” Abuka said.
Juma Walusimbi, the bank’s director of the communications department, cautioned the public against making massive withdrawals of money from banks during the election period in order to avoid risks.
Commenting on system upgrades being undertaken by banks, Walusimbi said BOU had approved the timing due to reduced currency pressure from the public.
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