By Martin Luther Oketch
The Chief Executives of commercial banks meet this morning to chat a way forward on the Bank of Uganda Directive to lower interest rates before government caps rates that financial institutions can charge borrowers.
This is after the banks failed to reduce loan rates in response to reduced Central Bank Rate in June.
The central bank governor wrote to the banks this week saying instead of lowering interest rates, they had continued to charge a premium on loans even as borrowers battle the Covid-19 pandemic and its effects.
In the July 7th letter, Emmanuel Tumusiime Mutebile threatened to take serious action against non-compliant commercial banks.