Wednesday, July 6, 2011

Bank of Uganda Sets New Interest Rate at 13.00%

The Bank of Uganda 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,".

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.


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