Bank of Uganda has raised the Central Bank Rate (CBR) by 2% with the aim of tightening monetary policy in the country and deal with inflation.

BOU deputy governor Dr Louis Kasekende says the CBR which was raised to 14% in July, has shown signs of decreasing inflation.

Dr Kasekende says this has forced BOU to raise the central bank lending rate to 16% for this month.

He adds that they are targeting to raise the CBR up to 22% in order curb the growth in bank credit, which has expanded rapidly.

He assures the public that annual inflation will begin to decline towards the end of this year, adding that it will slide further next year to 5%.

Ultimate Media