BoU policy stance unchanged at 10pc CBRMutebileas usual
The Bank of Uganda (BoU) Tuesday maintained its policy stance, leaving its indicative rate – the central bank rate (CBR) unchanged at 10pc for the fourth time running.
BoU Governor Tumusiime Mutebile said a stable macro-economic environment and positive sentiment over prospects for fiscal 2019/20 weighed against downside risks emanating from the US-China trade war, unfavourable weather which could impact agriculture and delays in completing infrastructure projects, dictated a cautious stance.
The bank projects the economy to expand at 6.3pc during fiscal 2019/20, marginally up on the 6.1pc registered in 2018/19 which ends on June 30.
“Indicators of real economic activity and business and consumer confidence indicate favourable economic growth prospects in the near term,” Mutebile said.
“But escalating global trade tensions, local unfavourable weather and delays in key infrastructure projects could dampen economic activity,” he added.
Headline inflation receded to 3.3pc in May from the 3.5pc registered in April while annual core inflation also declined 4.6pc in May from 4.8pc.