The Central Bank raised the lending rate by 1% moving it to now 17% as a way to control the rising inflation in the country’s economy.
Announcing the new CBR yesterday, the central bank governor, Prof, Emmanuel Tumusiime Mutebire said, the bank’s forecasts based on the prevailing domestic and external economic conditions and outlook indicates that inflation will continue to rise over the course of FY 2015/16.
He also says that the exchange rate depreciation experienced over the last 12 months is yet to feed through completely to prices and will therefore continue to put upward pressure on inflation.
‘The BOU’s inflation forecasts based on the prevailing domestic and external economic conditions and outlook indicate that inflation will continue to rise over the course of FY 15/16’.