Business
Bank of Uganda holds benchmark lending rate at 11.50 percent
Publish Date: Feb 04, 2014
Bank of Uganda holds benchmark lending rate at 11.50 percent
Governor Bank of Uganda Emmanuel Tumusiime Mutebile
  • mail
  • img
newvision


Uganda's central bank held its benchmark lending rate at 11.50 percent on Tuesday, in line with the expectations of three out of five analysts after inflation edged higher in January.


Of the analysts contacted by Reuters, two had expected a cut in the rate. The central bank, Bank of Uganda, had also kept the rate steady in January after an unexpected cut in December.

Uganda's headline inflation rate rose to 6.9 percent in January from 6.7 percent a month earlier.

"Although core inflation has decelerated, helped by recent Ugandan shilling appreciation, food prices - which have risen strongly in recent months - are still a concern," Standard Chartered economist Razia Khan said in a note.

Khan, who had expected rates to remain steady, said the growth forecast was robust, despite a conflict in South Sudan, a major trading partner on Uganda's border.

Bank of Uganda Deputy Governor Louis Kasekende told a news conference bank forecast inflation - both headline and core rates - would average between 5 to 6 pct in first half of 2014

"Real GDP growth for 2013/14 is projected at between 6-6.5 percent. Domestic household demand is slowly gaining traction and is expected to continue to rise," he said. Reuters

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Dr Maggie Kigozi: Obstacles in businesses are jewels
Dr Maggie Kigozi, director Crown Beverages Ltd has challenged the youth to consider obstacles in starting and running businesses as opportunities to create better lives....
How to widen Uganda’s tax base in a large subsistence economy
Uganda’s tax base remains small and the country is grappling with measures on how to widen the tax base in light of decreasing donor funds and pressures to finance the national budget....
UAE Exchange Uganda observed World Food Day
UAE Exchange, the leading global remittance, foreign exchange and payment solutions brand observed World Food Day on 16th October. This year the theme was Family Farming: “Feeding the world, caring for the earth”...
Nigerian cleric warns Uganda over oil curse
Rev Father Edward Obi, a leading civil society activists fighting against the effects of the oil curse in Nigeria has warned Uganda that since oil has been discovered Ugandans are not safe from the negative effects the resource brings....
Oil to spur capital markets – Nsamba
This year marks 18 years since the Capital Markets Authority (CMA) was formed....
UBOS releases Producer Price Index
THE indices for hotels and restaurants indicate that annual prices for hotel services fell by 2.5 percent during the period of April, May and June 2014, compared to the same period in 2013...
Should the absence of bride price prevent couples from wedding?
Yes
No
Can't Say
follow us
subscribe to our news letter