Bank of Uganda maintains lending rate at 6.5%
By Ritah Kemigisa
The Bank of Uganda has maintained the lending rate at 6.5% to further support the economy which is still recovering from the shocks of the covid19 pandemic.
In a statement released today by the deputy governor Michael Atingi-Ego says the monetary policy committee has noted that much as the economic growth outlook looks more positive than projected, it could be affected by supply chain disruptions, tighter global monetary and financing conditions.
Atingi-Ego is however confident that government’s investment in infrastructure that is expected to enhance productivity capacity, increased social spending and recovery of the tourism sector will lead to annual growth of 7% in the medium term.
He meanwhile warns that the slow execution of public investment projects and further delays in the oil investments could dampen the growth outlook.
The central bank has meanwhile maintained the targeted credit relief measures for the education and hospitality sectors which remained under lockdown for an extended time.
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