Since the last MPC in October, new data has shown that amidst a surge in fuel prices, inflation has continued to slow down Kampala, Uganda | THE INDEPENDENT | On Dec.6, the Bank of Uganda (BoU) kept the central bank rate unchanged and promised to keep monitoring inflation and ensuring the …
Read More »Uganda’s economy grew faster amidst high interest rates
The economy is now projected to grow in the range of 5-6% in the Financial Year 2023/24 riding on continued economic recovery and the developments in the oil and gas Kampala, Uganda | ISAAC KHISA | Uganda’s economy grew faster in the last financial year than previously anticipated a good sign …
Read More »Museveni’s push for interest rate capping: Avoiding the Cobra’s Bite
COMMENT | DR SIMON M MUTUNGI | During the British imperial rule in India, the city of Delhi found itself grappling with a significant infestation of venomous cobras. In an earnest attempt to mitigate this issue, the British colonial government instituted a reward system for the public: a bounty was offered …
Read More »Interest rates pushing Africa further into climate chaos
Nairobi, Kenya | THE INDEPENDENT | Interest rates on external debt are hampering efforts by African governments to harness their resources for the green energy transition. President William Ruto of Kenya said that while Africa is endowed with vast renewable energy resources, it is being limited by high-interest rates on …
Read More »Central Bank keeps interest rate high despite inflation easing
Kampala, Uganda | THE INDEPENDENT | The Bank of Uganda has opted to maintain its base interest rate, the Central Bank Rate at 10 percent despite the sustained fall in inflation since late last year. The CBR is an indicator of the cost of money to commercial banks, on which …
Read More »Gov’t protects private sector from domestic borrowing impact
Kampala, Uganda | THE INDEPENDENT | The spike in domestic borrowing by the government has increased the discomfort in the private sector, as commercial banks also raise their interest rates. Commercial banks have been announcing new prime lending rates over the last three months, attributing their decisions on ‘current business environment’ …
Read More »World Bank chief says global economy “dangerously close” to a recession
Washington, U.S. | Xinhua | The global economy is “dangerously close” to a recession, as inflation remains elevated, interest rates rise, and growing debt burden hits the developing world, World Bank President David Malpass said Thursday. “We’ve lowered our 2023 growth forecast from 3 percent to 1.9 percent for the global …
Read More »Demand for credit slows with raising interest rates
Kampala, Uganda | THE INDEPENDENT | The banking industry has defended its changing mode of operation which sections of the public describe as less friendly, saying they have learnt from the effects of global shocks on the businesses and economies generally. In recent times, Bank of Uganda has compelled commercial banks …
Read More »BOU tightens interest rates as cost of living worsens
Kampala, Uganda | THE INDEPENDENT | The Bank of Uganda has raised the Central Bank Rate, the rate the regulator uses to control the cost of money from the banking industry, to 9 percent from 8.5 percent, at which it has been for only five weeks. The frequent Monetary Policy …
Read More »Deputy Speaker appeals for cut in interest rates
Kampala, Uganda | THE INDEPENDENT | The Deputy Speaker of Parliament, Thomas Tayebwa, has implored Bank of Uganda and all players in the banking sector to consider lowering lending rates, in order encourage more production and counter the anticipated inflation due to the rising commodity prices. Tayebwa said he was concerned that …
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