The Governor of bank of Uganda Emmanuel Mutebile says he is happy with the reductions in lending rates made by commercial banks.

A number of commercial banks have been cutting lending rates following continued appeals by the governor over high lending rates despite cuts in central bank rates.

Announcing the monthly central bank rate Mutebile said that he has noticed some reductions in lending rates by commercial banks.

The central bank rate has now been set at 13% from 15% last month.

Meanwhile the governor says he does not expect any further reduction in inflation rates because it might have negative economic implications for Uganda.