Home » Breaking News, Business » Bank of Uganda Cuts Lending Rate to 19%

By John Kibirige

Bank of Uganda has lowered the Central Bank Rate (CBR) to 19% in July 2012 from 20%  in the previous month of June.

Bank of Uganda Deputy Governor Louis Dr Louis Kasekende, while releasing the Monetary Policy Statement for July 2012 to the press explained that the reduction was occasioned by the expected fall in inflation over the course of the next 6-12 months.

Kasekende  said that he was confident the core measure of inflation would be in single digits by the end of this year and hit the bank’s medium-term target of 5 % during 2013.

Uganda’s year-on-year inflation rate slowed to 18.0% in June from 18.6 % a month earlier and an October peak of 30.4 % , prompting some analysts to forecast another rate cut at Tuesday’s meeting.