Bank of Uganda holds key lending rate at 7%

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Bank of Uganda (BoU) has maintained the Central Bank Rate (CBR) at 7 per cent in April 2021, according to the Monetary Policy Statement (MPS) for April issued by the Governor, Prof. Emmanuel Tumusiime- Mutebile
The bank held its benchmark lending rate at 7.0%, saying economic recovery was gaining pace.

“Economic recovery is proceeding and is stronger than was projected,” the bank said in a statement, adding growth contracted at a slower pace of 1.1% last year compared to a projection of a 2% contraction.
The Governor observes that The MPC noted that economic recovery is proceeding ad is stronger than projected at the last meeting In February 2021.
He adds: the high frequency economic indicators for the first quarter of 2021 indicate a gradual strengthening of economic activity but still at subdues pace

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read: After 20 years of dedicated service as Governor Bank of Uganda: Time for aging & ‘unwell’ Mutebile to go home?

‘’ the recovery is expected to strengthen, with above trend growth I outer years as vaccine effectiveness increases, which should allow for educed social distancing and rebound In consumption’’
‘‘In consideration of the current and expected macroeconomic developments, the MPC assessed the uncertainties and risks facing the economy to warrant keeping the monetary conditions accommodative’’

read: Is the Central Bank Rate losing significance?

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