By John Kibirige

Bank of Uganda Tumusiime Mutebile

Bank of Uganda has cut the Central Bank  Rate to 17% in the month of August. While announcing the reduction,Bank of Uganda Governor, Tumusiime Mutebile that though BoU cannot influence other banks to reduce their rates,he will influence other banks to lower their rates to enable more people borrow money from banks.

Mutebile said that the CBR reduction is aimed at stimulating economic recovery through lower commercial bank lending rates.

The Governor also said that inflation  which influences prices of goods and services will fall to a single digit before the end of September, sooner than earlier forecast.

The Bank of Uganda (BoU) in July  cut its benchmark lending rate  from 20% to 19%.

BoU in June eased its monetary policy stance and reduced the Central Bank Rate (CBR) to 20 percent from 21 percent in May.