Uganda holds key lending rate at 9%

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Uganda central bank held its key lending rate at 9.0 per cent on Monday, citing robust economic growth for its decision.

Bank of Uganda Governor Emmanuel Tumusiime-Mutebile told a news conference in Kampala that there were, however, risks to the growth outlook.

Tumusiime-Mutebile said the risks included balance of payments pressures, while the shilling’s exchange rate remained vulnerable and posed risks to inflation.

The bank predicted higher economic growth for 2018/19 (July-June) compared with the previous year.

The bank said the economy was forecast to expand six per cent in 2018/19, from a projected 5.8 per cent in 2017/18 and 3.8 per cent in 2016/17.