The Monetary Policy Committee (MPC) of Uganda’s central bank decided on Dec 3 to cut the benchmark lending rate by 50bps to 11.5% seeking to spur economic growth despite rising inflationary reassures. The central bank noted that core inflation will likely rise above its 5% target in the second half of 2014, reaching 6% or 7%. The bank also sees potential risks of stronger inflationary pressures resulting from domestic demand pressures and global economic recovery. However, the bank expects that the annual core inflation will stabilise around its 5% target in the medium term.
Uganda’s annual headline inflation slowed to 6.8% in November from 8.1% a month earlier. The annual core inflation was 7.0% y/y last month compared to 7.2% at end-October.
The central bank noted that real economic activity continues to show signs of recovery and that the growth momentum will benefit from rising private consumption. However, the economic growth remains below potential and is facing negative risks from uncertain global economic environment.
Related Articles
Leo Lithium to return $171mn from sale of 40% stake in Mali’s Goulamina project to China’s Ganfeng
Leo Lithium (ASX: LLL) has announced it will hand back more than $171mn to investors next month, after ruling out acquisitions and preparing to leave the Australian Securities Exchange (ASX). The ... more
Kinross Gold cuts stake in Ghana’s Asante in $33.8mn share sale, retains 13.2% on diluted basis
Canada-based senior gold producer Kinross Gold Corporation (TSX: K; NYSE: KGC) has sold nearly 30mn common shares in Asante Gold for CAD46.2mn ($33.8mn), cutting its position by around 44.7 % to 5.2% ... more
Algeria’s Sonatrach, NOC Kenya sign draft deal on oil E&P, LPG imports
Kenya’s National Oil Corporation (NOCK) and Algeria’s state-owned energy giant Sonatrach SPA have agreed to collaborate across the petroleum value chain, including upstream exploration and ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
18 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago