Uganda c.bank raises rates, sees more if inflation stays high

KAMPALA, Sept 6  – The Bank of Uganda raised its benchmark lending rate on Tuesday for the second time since its launch in July and promised more increases if the outlook for inflation worsened.

The central bank increased the rate to 16 percent from 14 percent in August, in a move aimed at curbing credit growth and inflation and supporting the Ugandan shilling.

There was no immediate reaction from the currency which has lost 20 percent against the dollar in the last year.

 

 

Source: Reuters Africa newsletter

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