BoU Maintains CBR at 10 Percent in January

By George Mangula

Bank of Uganda (BoU) has maintained the Central Bank Rate (CBR) at 10 percent in January 2019.

According to a Monetary Policy Statement issued to the press by the Governor Bank of Uganda, Prof. Emmanuel Tumusiime – Mutebile, the BoU raised rates for the first time in three years last October.

He cited concerns about rising inflationary pressures and the Bank subsequently left them unchanged at their December meeting.

Economic growth was on a steady path, with output slightly ahead of the economy’s potential, Prof. Mutebile said during the press briefing in Kampala.

“The inflation outlook in the intermediate period has improved, largely driven by a relatively stronger shilling and a good crop harvest,” he said.

Rising trade protectionism around the world could hurt demand for Uganda’s exports, he said, adding however, that the damage would negatively impact on this year’s growth forecast.

“The economy is projected to grow by about 6.3 percent in fiscal year 2018/19 (July-June) and remain on a steady growth trajectory over the coming years,” he said.

The growth was partly supported by the BoU’s ‘accommodative policy stance’, with the effects of public infrastructure investments ensuring strong domestic demand and improved agricultural performance, Prof. Mutebile noted.