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Commercial banks lower lending rates

(L-R) Patrick Mweheire MD Stanbic Bank, Ashok Kumar Garg MD Bank of Baroda, Harman Kasekende MD Stanchart Bank and Julius Kaketo MD Orient Bank, Banking Association's Wilbrod Owor listen to a presentation during a meeting between Uganda Bankers Association and Members of Parliament at Imperial Royale Hotel. independent Photo/Patrick Kagenda
(L-R) Patrick Mweheire MD Stanbic Bank, Ashok Kumar Garg MD Bank of Baroda, Harman Kasekende MD Stanchart Bank and Julius Kaketo MD Orient Bank, Banking Association’s Wilbrod Owor listen to a presentation during a meeting between Uganda Bankers Association and Members of Parliament at Imperial Royale Hotel.

The major commercial banks in the country have released statements, lowering their prime lending rates, the lowest lending rates for the best customers to between 21% and 23% per annum.

This is in response to Bank of Uganda’s recent decision to lower the Central Bank Rate last month from 14% in August to 13% last month citing a drop in inflation.

In a statement, Stanbic Bank said it will lower its prime rates for the fourth time this year to 21% from 22% per annum fromDec 01 2016 for credit facilities in Uganda Shillings. Both existing and new borrowing customers will enjoy the relief.

Relatedly, Centenary Bank will also lower its prime lending rate to 22% effective Dec 01, 2016. Standard Chartered Bank has announced plans to move its prime rates for shilling loans to 22.5% from 24%while DFCU bank plans to reduce its prime lending rate to 23% effective Nov 14.

Stanbic Bank CEO Patrick Mweheire (Pictured left, top) said the bank’s decision to lower the lending rates is anchored on the BOU data suggesting that the economy is recovering.

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