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.
â€œCredit increase in the economy is partly explained by increased economic activities. The quarter October-December marks a peak in agricultural activities like trade,â€ David Kihangire, the director of research at the central bank, told a press briefing.
Quoting an economic indicatorâ€™s report, Kihangire said the broadly defined measure of money (M3) expanded to sh3,492.8b from sh3,431.4b.
â€œThe economy is growing and the supply of money is made to support economic activity mindful of not causing inflation,â€ Kihangire stated.
He said headline inflation at the end of November had increased.
Private sector credit expands