Uganda: Economy Shows Recovery Signs

Although inflation has risen for the second consecutive month, Bank of Uganda has kept its key monetary rate, the Central Bank Rate, at 12%, in yet another indication that boosting private sector credit to stimulate economic growth remains a key priority for the Bank.

In keeping the CBR at 12%, the Central Bank is sending out a message to the market that the current rate of inflation - at 5.5% for headline - is not that serious to warrant a drastic tweak of the CBR. Dr Adam Mugume, the executive director (Research), says the public shouldn't read too much into the increase in inflation.

...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.