By Our Reporter
Uganda’s commercial banks have begun to react to Bank of Uganda’s (BOU) decision to reduce the Central Bank Rate (CBR) from 16% to 15% in the 2 month period ending June 2016. Stanbic, the largest bank in Uganda by assets has today announced a reduction in its prime lending rate from 24% to 23%.
In a statement seen by The CEO Magazine, Stanbic Bank CEO Patrick Mweheire said, “We track our local currency prime rate against the movements of the CBR to maintain the transparency of our pricing to our clients. This is the reason why we were one of the few commercial banks that reduced rates the last time the CBR was cut in April 2016. This further drop in the CBR will stimulate private sector credit growth and ease the pressure on our borrowing clients. We are proud to be a leader in adjusting our rates downwards and we are confident our clients will greatly benefit from our actions.
