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UPDATE 1-Uganda central bank cuts benchmark lending rate to 12 pct
December 14, 2016 / 9:57 AM / a year ago

UPDATE 1-Uganda central bank cuts benchmark lending rate to 12 pct

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KAMPALA, Dec 14 (Reuters) - Uganda’s central bank cut its main lending rate on Wednesday to 12 percent from 13 percent, saying there was still a need to boost economic growth.

Policymakers in the East African nation began cutting the benchmark rate in April, bringing it back down from the peak of 17 percent reached as the bank battled a surge in prices.

“In line with efforts to keep the domestic economic growth momentum, the BoU (Bank of Uganda) believes that there’s scope to continue easing monetary policy,” bank governor Emmanuel Tumusiime-Mutebile told a news conference.

He said inflation was expected to edge up in the short term, but it would remain on course for its 12 month target of 5 percent, adding the shilling was under pressure from global uncertainties.

“These factors could continue to cause volatility in the exchange rate,” he said. (Reporting by Elias Biryabarema; Writing by Duncan Miriri; Editing by Tom Heneghan)

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