Economy still faces several risks, says BoU

By MARTIN LUTHER OKETCH

Bank of Uganda (BoU) has warned that there still exist risks such as geopolitical tensions, which could push up energy prices and freight costs, resulting in higher inflation in Uganda.

Inflation has decelerated but Bank of Uganda noted in its Monetary Policy Report that the above and other risks such as ongoing global developments, which could result in depreciation of the shilling, extreme weather and an increase in seasonal consumptive activity could create inflationary pressures. However, despite the risks, Bank of Uganda reduced the Central Bank Rate (CBR) to 9.75 percent from 10 percent to influence a cut in lending rates that currently stand at above 18 percent. Read more

Written by Reporter