• EDITORIAL POLICY
  • ABOUT US
PML Daily
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
Home BUSINESS

BoU maintains lending rate at 9% amid stagnant economic growth

GEORGE OKELLO | PML Daily Senior Correspondent by GEORGE OKELLO | PML Daily Senior Correspondent
December 9, 2019
in BUSINESS
0 0
1
SHARES
99
VIEWS
FacebookWhatsAppTwitter
BoU has maintained lending rate at 9% amid stagnant economic growth (PHOTO/File)

KAMPALA —Bank of Uganda (BoU) has kept the Central Bank Rate (CBR) at 9 percent amid slow economic growth.

Speaking at the release of the December Monetary Policy Statement in Kampala on Monday, December 09, 2019, BoU Governor Emmanuel Tumusiime-Mutebile said since the beginning of 2019, there has been moderate economic growth driven by both slowing global activity and domestic factors.

“Indeed, in the first 10 months of 2019, tourism receipts are estimated to have grown at a lower rate and merchandise exports, excluding gold and re-exports, contracted reflecting moderating external demand. On the domestic scene, moderation of domestic demand conditions could also have contributed to the slowing of economic activity,” Mr Mutebile said in a statement.

“Against this backdrop, the BoU has decided to keep the CBR at 9 percent. The band on the CBR will remain at +/-3 percentage points and the margin on the rediscount rate and bank rate will remain at 4 and 5 percentage points on the CBR, respectively. Consequently, the rediscount rate and the bank rate remain at 13 percent and 14 percent, respectively,” he added.

The Governor said that persistent global geo-political tensions, uncertainty around trade policies and softening domestic private sector investment spending could generate headwinds to economic growth.

“In addition, public sector financing needs have risen amidst limited fiscal space, raising the prospect of further pressure on the domestic borrowing costs,” he said.

The Governor said overall, economic growth, which is in the range of 5.5-6.0 percent, is expected to be sustained into 2020.

“This projection remains subject to downside risks, mainly stemming from uncertainties in the global economy. Over the medium term, monetary and fiscal impetus is expected to support stronger GDP growth. As a result, private sector investment will increase, providing additional support to the economic growth outlook,” he said.

The Consumer Price Index (CPI) data for November 2019, released by Uganda Bureau of

Statistics (UBOS), indicates that inflation remained subdued. However, annual headline and core inflation rose to 3 percent and 2.9 percent, respectively from 2.5 percent and 2.6 percent in October 2019. The increase in inflation was in part driven by higher food crop prices, and Energy, Fuel and Utilities (EFU) prices.

Food crops inflation increased from minus 0.9 percent in October 2019 to 0 percent in November 2019, while EFU inflation rose to 7.4 percent in November 2019 from 5.1 percent in October 2019. A relatively stronger shilling and subdued domestic demand contributed to moderation of the increase in inflation.

Comments

Tags: Bank of UgandaBOUCentral Banktop

Related Posts

State Minister for Water Ronald Kibuule (PHOTO/Courtesy).
NEWS

Army withdraws SFC guards from minister Kibuule over election rigging

January 21, 2021
241
Mr. John Rujoki Musinguzi, the URA Commissioner General (PHOTO/Courtesy).
BUSINESS

URA extends return filing deadline for December returns

January 21, 2021
110
Ugandan opposition leader Bobi Wine at the gate of his home, which soldiers have surrounded after he alleged mass electoral fraud (PHOTO/Courtesy).
NEWS

End politically motivated detention of Bobi Wine and his wife, Amnesty International tells Museveni

January 21, 2021
358
Information Minister Judith Nabakooba who as defeated by NUP's Joyce Bagala greets Katikkiro Mayiga recently (PHOTO/File)
NEWS

Buganda Kingdom dismisses sectarian links as region massively reject NRM, President Museveni

January 21, 2021
435
Pallaso, Slick Stuart & Dj Roja through as finalists for highly anticipated award (PHOTO/Courtesy).
Entertainment

Pallaso, Slick Stuart & Dj Roja through as finalists for highly anticipated award

January 20, 2021
191
Retired Masaka Bishop Kaggwa has succumbed to Covid-19 (PHOTO/Courtesy)
NEWS

BREAKING! Retired Masaka Bishop Kaggwa succumbs to Covid-19

January 20, 2021
669






 

 

About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us

KIU

  • EDITORIAL POLICY
  • ABOUT US

© 2020 PMLDAILY.COM

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2020 PMLDAILY.COM

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In