The Governor of Bank of Uganda, Professor Emmanuel Tumusiime Mutebile, has today threatened to take retaliatory statutory action on the banking industry over its reluctance to cut interest rates in line with BoU’s cuts on the Central Bank Rate. Since the year began, BoU has cut its benchmark lending rate from 9 percent to a historic low of 7 percent in June. Nonetheless, banks have been reluctant to follow cue. Comparatively average lending rates have fallen by 2.15 percentage points from 19.88 percent at the beginning of the year to just 17.73 percent in April 2020. However in May 2020,…
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