Ugee

Ugandan Central Bank to reduce interest rates

KAMPALA - The Bank of Uganda is planning to reduce interest rates in an effort to allow more people to borrow, Mr Tumusime Mutebile has hinted. “I want to reduce interest rates in the market so I have to cut bank rates. I do not have any intention of intervening in the markets to control interest rates,” he told journalists earlier in the week. “There are things I can do outside the markets, which will force banks to reduce interest rates,”  The bank ratess currently stands at 16.40%. The central bank’s 182-day treasury bill had a yield of 13.502 % on the August 27 auction from 13.284% in the previous sale. The return on a three-year Treasury bond issued on August 20 stood at 14.674%. Uganda is also facing soaring inflation, driven by high global food and fuel costs. In August, the annual rate increased to 15.6% from 13.8% in July. Mr Mutebile said he was working on reducing inflation, which he said was under control.

 

< Prev		Next >