KAMPALA, July 6 – The Bank of Uganda launched an inaugural benchmark lending rate and inflation target on Wednesday in a bid to tame the price pressures that pushed the east African nation’s inflation rate to a 17-year high in May.
Bank of Uganda Governor Emmanuel Tumusiime-Mutebile said the bank would target 5 percent core inflation in the “medium term”, without giving a specific timeframe, and was setting a new central bank rate at 13 percent for July.
Uganda’s core year-on-year inflation rate — which excludes food crops, fuel, electricity and metered water — stood at 12.2 percent in June, up from 11.3 percent a month earlier while the headline rate was 15.8 percent, down from 16 percent in May.
Source: Reuters Africa newsletter
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