By Our Reporter
Bank of Uganda (BOU) has increased the Central Bank Rate (CBR) by 1.5 percentage points to 16%. This according to the Governor Emmanuel Mutebile is as a result of rise in core inflation from 4.9% in June 2015 to 5.4% in July. The increase in consumer goods prices cut across all subcomponents of the consumer price index (CPI). The momentum of price increases remained high for services and other goods category reflecting the impact of exchange rate depreciation.
“Indicators of economic activity point to a relatively strong real Gross Domestic Product (GDP) growth in 2015, supported by public investments, faster growth in private sector borrowing and a recovery in the agricultural sector. However, commodity prices have continued to falter and this continues to be a source of uncertainty on export growth. In addition, the risks coming from the global economic situation continue to adversely affect macroeconomic developments in Uganda,
