Phillip Odera, Stanbic Bank’s managing director has urged customers of the bank to save more if they are to beat their future targets.
Odera’s comment comes at a time when traders under their umbrella organization KACITA have announced to part ways with Uganda’s commercial banks over high charges especially on loans.
“We know this is a difficult time but customers with reliable sources of income should save and earn interest which will aid their businesses in the future,” Odera told The Independent.
The banker is convinced that inflation being on the downward trend interest rates by commercial banks are expected to reduce by the margin of the central bank’s policy lending rate. Stanbic bank reduced its prime lending rate to 27.5% down from 28.5% in January and February respectively following Bank of Uganda’s reduction of the CBR by one percentage point from 23 to 22%.
Commercial banks have in the recent past increased their prime lending rates from an average of 23% to about 30% as a result of the increase in central bank rate (CBR) from 13% in July 2011 to 23% in January 2012 before easing it to 22% in February.
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