{{Uganda’s Central Bank (Bank of Uganda) announced thursday that it projected average annual inflation and core inflation would remain within a range of 5-6% in the first Quarter of 2014.}}
On Tuesday, Bank of Uganda maintained the Central Bank Rate at 11.5%, saying the move was inevitable because of the anticipated rise in the inflation rate and depreciation of the shilling against US dollars in the near future.
Presenting Monetary Policy Statement for the month of February, Deputy Governor Bank of Uganda Louis Kasekende said, “The dry spell experienced in parts of the East African region might impact on domestic food prices in the coming months. In addition, a reversal of the current exchange rate appreciation could also serve to strengthen inflationary pressures going forward.”
The Executive Director of Research Bank of Uganda, Dr Adam Mugume, said credit growth is still low to support high economic growth.
NMG
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