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Private sector credit expands

By Vision Reporter

Added 26th December 2006 03:00 AM

PRIVATE sector credit expanded sharply in October to sh1,621b from sh1,574b in September, the central bank has shown.

By Sylvia Juuko

PRIVATE sector credit expanded sharply in October to sh1,621b from sh1,574b in September, the central bank has shown.

The expansion highlighted consumer boom and increased economic activities towards the year-end.

The leap in credit pushed up all measures of money supply to support peak in activities due to the festive season.

“Credit increase in the economy is partly explained by increased economic activities. The quarter October-December marks a peak in agricultural activities like trade,” David Kihangire, the director of research at the central bank, told a press briefing.

Quoting an economic indicator’s report, Kihangire said the broadly defined measure of money (M3) expanded to sh3,492.8b from sh3,431.4b.

“The economy is growing and the supply of money is made to support economic activity mindful of not causing inflation,” Kihangire stated.

He said headline inflation at the end of November had increased.

Private sector credit expands

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