Home » News » Business » Economy » Bank Of Uganda Increases Lending Rate To 7.5%
Bank Of Uganda Increases Lending Rate to 7.5%

Bank Of Uganda Increases Lending Rate To 7.5%

As inflation notably grows, Bank of Uganda has decided to increase the lending rate to 7.5% for all those borrowing.

The Deputy Governor, Michael Atingi-Ego explained that recent developments in the world have seen inflation rise rapidly and that this is spreading broadly across the basket of consumer goods and services. He said this through a statement on Thursday.

“The weakening of the Uganda Shilling against the US Dollar coupled with rising prices for food and energy have worsened the inflation outlook. Higher business costs are likely to spread into consumer prices thereby pushing inflation higher in the coming months,” Atingi said.

Bank of Uganda, therefore, in a bid to correct this inflation situation, has decided to increase the Central Bank Rate.

This is to deal with the issue of excess liquidity in terms of money in the market and also try to control the skyrocketing prices.

“Accordingly, the Monetary Policy Committee has increased the Central Bank Rate to 7.5 percent,”Atingi said.

Atingi says the rate is going to keep going higher for as long as the inflation is still on. The question is, how does this help a lay man because increasing this rate means borrowing has been made difficult.

This is the reason why opposition is probably always on the streets crying out to government to do something about the situation.

Check Also;

This is not a Paywall, but Newslex Point's journalism consumes a lot of time, hard-work and money. That's why we're kindly requesting you to support us in anyway they can, for as little as $1 or more, you can support us .

Please use the button below to contribute to Newslex Point, Inc. using a credit card or via PayPal.

Donate Button with Credit Cards




About Suubi Anne


Check Also

Ramathan Ggoobi; New Budget To Focus On Economic Recovery

New Budget To Focus On Economic Recovery – Ramathan Ggoobi

The Secretary of the Treasury, Ramathan Ggoobi has said next year’s financial budget will focus ...