The Deputy governor at the bank, Dr. Louis Kasekende has moved to control the current high inflation rates which they say has resulted from poor price control.
The Bank of Uganda says as a way to control inflation as well as closely monitoring commercial banks business transaction on a daily basis, the central bank is introducing a new system dubbed, inflation targeting.
DR. louis kasekende
While announcing the new strategy today in Kampala, Kasekende states that they have been finding it difficult to monitor commercial banks easily forcing them to move from quantity to inflation targeting where the central bank will be producing a monthly number for monetary and sector development..
Meanwhile, the head of research at the bank, Dr. Adam Mugume adds that the strategy will see commercial banks operate under a given target set by the central bank. This not withstanding the final consumer is also affected by the strategy.
Inflation targeting strategy is slated to kick off on 4th July 2011 making Uganda the third country in the region after Kenya and Rwanda to implement it.
By Isaac Senabulya