Central Bank of Uganda to target core inflation at 5%
Bank of Uganda
The central bank of Uganda could reduce the amount of money in circulation if by June the inflation situation in the country persists
According to the supervision department of the bank of Uganda , the move is to address inflation that is caused by factors within the country
At the moment the headline inflation that concerns food and energy is standing at 11.1% because of factors outside the control of Uganda like the middle East crisis, other importing countries like India and china which are facing the same crisis.
However, the kind of inflation that the bank of Uganda is looking at reducing is that which is caused by domestic factors within Uganda which if controlled could in turn control the hike in prices of goods and services.
The move by central bank to take control of the economy comes in the wake of government’s demand for a supplementary budget of over 150 billion shillings, an aspect that international monetary fund says may hamper the central’ bank’s effort to reducing the core inflation that stands at 7.8%.
Bank of Uganda has now launched a quarterly survey to be able to get to the real causes of factors that hamper businesses and increase cost of operation which in turn hike the cost of living.