The move represents the Bank's first interest rate decision as it begins using the 7-day interbank rate to influence inflation, and begins explicitly targeting inflation. Uganda reported annual headline inflation of 16% in May this year, up from 14.1% in April, while core inflation was 11.3% in May and 9.7% in April.
Wednesday, July 6, 2011
Bank of Uganda Sets New Interest Rate at 13.00%
The set its new monetary policy interest rate (the central bank rate) at 13.00%. Bank of Uganda Governor, Emmanuel Tumusiime Mutebile, said: "To tighten monetary policy, the Central Bank Rate will be set at 13% for the month of July. The interest rate will be used to guide the 7–day interbank interest rates,".