Gulu MPs castigate Central Bank over high interest rates

BANK OF UGANDA | INTEREST RATES

Members of parliament from Acholi sub-region have attacked Bank of Uganda for failing to reduce the interest rate, saying it is undermining economic growth among the rural population.

The MPs, led by the Awa County MP Reagan Okumu, said it was a contradictory for the Central Bank to preach saving to the people, yet fail to bring down the high interest rates.

"We suggest BOU officials appear before Parliament to answer these queries,ˮ he said.

He said while other countries have reduced their interest rates, BOU has failed to take such measures on commercial banks, that continue to exploit the peasants.

Gulu municipality MP Layandro Komakech said high interest rates had made business more risky for the local business community, adding that many people have lost their property to banks.

"Sooner or later, some people are unable to service the loans due to the high interest rates and their property is seized by the banks,ˮ he said.

BOU publicist Silvia Juuk did not comment on the matter, referring this reporter to the director of communication, who was in a meeting by press time.

Bank of Uganda governor Emmanuel Mutebile said last week that they are engaging commercial banks so they can reduce interest rates.  Interest rates in Uganda average about 22%.