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
Kosmos Energy and partners start commercial operations at Mauritania-Senegal GTA LNG project
US-based oil and gas exploration and production (E&P) company Kosmos Energy has announced the start of commercial operations at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) ... more
South Africa’s power utility Eskom seeking ways to support Bitcoin mining, energy-intensive technologies
South Africa’s state-owned power utility Eskom is exploring opportunities to support Bitcoin mining, artificial intelligence (AI) development, and data centres to help its future ... more
EFCC arrests ex-NNPCL official and previous Warri managing director
Nigeria’s Economic and Financial Crimes Commission (EFCC) has arrested a former CFO of the Nigerian National Petroleum Co. Ltd (NNPCL), as well as a former managing director of 125,000 barrels per ... more