The acting governor bank of Uganda Justine Bagenda has re echoed the central banks concerns over the slow response by some commercial banks in reducing their interest rates despite the decrease in Central Bank Rate.

This was during the central banks officials interface with the members of parliament on the parliamentary committee on national economy chaired by Buliisa county mp Steven Birahwa Mukitale.

Bagenda says that commercial banks are responding positively and are reducing their interest rates but says that central bank is worried about the slow pace at which commercial banks are effecting the reductions.

She says that the changes in the interest rates are commensurate with the changes made by central bank which she says as unfortunate.

She adds that although the Central Bank has limited powers over commercial banks since Uganda is operating under liberalized economy, engagements are ongoing and changes will be realized soon.

In November 2011 interest rates were at 30% in most of the commercial banks but a recent mini survey carried out by KFM shows that most banks have reduced their rates to between 21 to 23%