Bank of Uganda reduces its Bank Rates

Submitted by IQ4News on Wed, 08/02/2012 - 10:26am

The central bank says it will reduce its rate from 23 percent to 22 percent this month. Stellah Nankya reports for IQ4News from Ugandan capital, Kampala.

This comes after a fall in inflation from 28 percent in December 2011 to 25.7 percent in January 2012. The governor attributes the fall in inflation to a sharp fall on credit and monitory grow, commodity prices and the appreciation of Ugandan shillings against the dollar. This implies that persons who are servicing loans will accept commercial banks to reduce the amount debited on their accounts.