BoU Governor Emmanuel Tumusiime-Mutebile

The Central Bank-Bank of Uganda (BoU), has maintained the Central Bank Rate (CBR) at 10 per cent in January 2019, this is according to a Monetary Policy Statement issued to the press by Governor Bank of Uganda, Prof. Emmanuel Tumusiime – Mutebile

BoU raised rates for the first time in three years last October, citing concerns about rising inflationary pressures. They subsequently left them unchanged at their December meeting.

Economic growth was on a steady path, with output slightly ahead of the economy’s potential, Governor Emmanuel Tumusiime-Mutebile said during the press briefing in Kampala on Thursday.

“The inflation outlook in the intermediate period has improved, largely driven by a relatively stronger shilling and a good crop harvest,” he said.

Rising trade protectionism around the world could however hurt demand for Uganda’s exports, Tumusiime-Mutebile said, adding the damage would however not be enough to dent this year’s growth forecast.

“The economy is projected to grow by about 6.3 percent in fiscal year 2018/19 (July-June) and remain on a steady growth trajectory over the coming years,” he said.

The growth was partly supported by the bank’s accommodative policy stance and the effects of public infrastructure investments ensuring strong domestic demand and improved agricultural performance, he said.