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Uganda’s inflation drops to 3%

Kampala, Uganda | THE INDEPENDENT | Uganda’s Annual Headline Inflation for January 2018 dropped to 3% from the 3.3% registered in December last year while Core Inflation fell to 2.6% from 3% , according to the latest figures provided by the Uganda Bureau of Statistics (UBOS).

This is lower than the 5.9% and 5.2% respectively, recorded in January 2017. The decline in inflation raises hope that the industry regulator, Bank of Uganda, might further lower the Central Bank Rate in the next Monetary Policy slated at the end of this month. CBR currently stands at 9.5%.

This comes at the time a number of commercial banks have lately announced a reduction in their interest rates in response to the declining CBR, with Stanbic Bank now offering the lowest rate at 17.5%.

Earlier, Louis Kasekende, the Deputy Governor, BoU, had indicated that the near term inflation outlook would remain subdued but core inflation projected to pick up in the Financial Year 2018/19.

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