BOU maintains Central Bank Rate at 6.5%

By Juliet Nalwooga

Bank of Uganda has maintained the lending rate at 6.5%

In a Monetary Policy Statement for December 2021, the Bank of Uganda Governor Prof. Tumusiime Mutebile says the central bank rate was maintained following the uncertainty of the new covid19 variant which might prompt containment measures that affect businesses.

Mutebile adds that the persisting global economic growth could stretch into the domestic industry which could affect the country’s economic performance.

He meanwhile says much as the resurgence of new Covid-19 variants has clouded the near-term outlook, the economic growth momentum is still expected to improve supported by expansion in global demand and higher private sector expenditure.

Written by Noelyn Nassuuna