The central bank governor, Prof. Emmanuel Mutebire has today announced a 1% increment in the central bank lending rate which now moves the rate from 13% to 14% this month with the aim of cracking down on the growing inflation in the country.

The CBR rate is a tool used by central bank to control inflation but the governor says he will continue to increase the rate depending on the inflation rates prevailing in the country.

The rates are also intended to prevent the current high food price rate inflation from feeding through into higher inflation for non food items by curbing the growth of aggregate demand and hence spending on goods and services.

Last month the central bank set the CBR rate at 13% which the bank anticipated to work as one of the monetary tools to control the crisis in Uganda’s economy witnessing the highest inflation ever at 18%.

Ultimate Media