By Silvia Nyambura
Bank of Uganda (BOU) has maintained the Central Bank Rate at 11 percent owing to a favorable macroeconomic environment. According to a statement read by the governor Emmanuel Mutebile in the week ending 15th August 2014, inflation remained subdued with annual headline inflation edging down to 4.3 percent in July 2014 from 5 percent in June 2014.This was largely on account of a decline in food inflation which fell from 17.2 percent to 12.9 percent during the same period. Core inflation picked up in the last months mainly as a result of exchange rate depreciation.
“The latest economic indicators suggest the domestic economy continues to register favorable performance and economic growth is projected to range between 5.5 and 6.5 percent in the current financial year,