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
Rwanda Air to launch flights to Abidjan, Lusaka
Regional airline RwandAir will soon launch flights to three more destinations in the next five months which include the Ivory Coast capital Abidjan and Zambian capital Lusaka....
Peter Ssematimba reinstated in the disputed Muyenga Club management
THE Supreme Court has confirmed a ruling in which the Court of Appeal upheld the High Court ruling, restoring Super FM Radio proprietor and managing director, Peter Ssematimba into the Muyenga Club....
Museveni to engage Kenyatta over continued blockage of Ugandan exports
President Yoweri Museveni has promised to engage Kenyan president, Uhuru Kenyatta, over continued blockage of Ugandan exports, an action that contravenes the East African Community (EAC) treaty....
Women conference to address business networking challenges
The conference, which opens on Thursday, will focus on devising means of confronting key challenges that hinder women from fully exploiting their potential....
Apple market value hits $700 bn
A rise in Apple shares Tuesday pushed the market value of the trend-setting US tech icon above $700 billion, becoming the first company to hit that milestone....
82 Ugandan companies enter EAC market
Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB)....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter