PIC: The Bank of Uganda governor Emmanuel Mutebile addressing the media on the Monetary Policy Statement. (Courtesy photo)
By Ali Twaha
The Central Bank has cut its key lending rate to 9% after lower inflation rate registered gave it a go-ahead to further ease lending rate to financial institutions.
A drop in the Central Bank Rate (CBR) is a signal from the industry regulator to commercial banks to reduce on interest rates charged on loans.
The average interest rate at commercial banks dropped to about 20% when the regulator maintained a 9.5% CBR in October 2017.
The CBR has declined by eight percentage points since April 2016.