Many people make banking decisions for example, opening an account, taking a loan etc without enough comparative information. In this article, The CEO Magazine, using latest figures from Bank of Uganda (BoU) has provided a comparative analysis on interest rates and other bank charges for personal accounts, something that will help you make informed decisions.
Enter into Prime Lending Rates (PLR)
In spite of BoU maintaining the Central Bank Rate (CBR) at 12 percent for sixth consecutive month until June 2013 when it was reduced to 11 percent and subsequently, maintained it in July,Ugandans are still paying expensively for loans as commercial banks have kept their Prime Lending Rates (PRL) high, something that will affect business growth and the economy at large.
CBR is a rate at which the Central Bank lends to commercial banks, implying that when BoU reduces the CBR, commercial banks are expected to follow suit by reducing their lending rates.
The CBR is revised according to the prevailing level of inflation. According to BoU’s report titled “Interest Rates and Bank Charges for Personal Accounts as at April 30, 2013
