Find visitors' favorite businesstravel Hotels And.... Book your best!

ad. Buy Grade A Premium Uganda Vanilla Beans NOW Available for Export  

Uganda Monetary Policy Statement for January 2013

Inflationary pressures remain under control despite the moderate rise in both headline and core inflation in December 2012.
Annual headline and core inflation rose to 5.5 percent and 4.6 percent, respectively in December 2012 from 4.9 percent and 3.9 percent in November 2012.

Core inflation nonetheless remains within Bank of Uganda's medium‐term target of 5.0 percent. The rise in inflation in December 2012 is largely attributed to seasonal factors and demand pressures associated with the festive season. Looking ahead, inflation will remain moderate for most of 2013 and stabilise around the Bank of Uganda medium‐term policy target of 5.0 percent.

Upside risks to inflation could however emerge in the event of higher global commodity prices, shocks to domestic food production and external shocks to the domestic economy.

The available real economy indicators show that economic activity has started to pick‐up, with quarterly GDP expanding by 2.0 percent in the first quarter of 2012/13. The annualized GDP growth of the last three quarters of 2012 which was 5.2 percent was much higher than previously projected. Growth in monetary aggregates is also picking‐up although private sector credit growth remains subdued partly on account of the high lending rates on shilling denominated loans. Given the lag in the monetary policy transmission mechanism, I expect a further reduction in lending rates.

A stronger economic growth recovery should start in the later part of 2013 as the accommodative monetary policy stance pursued in 2012 and improvement in credit extensions feed through to private domestic expenditure. Furthermore, the improving global economic outlook may strengthen domestic economic activity in the near term.

The Bank of Uganda's monetary policy will continue to focus on maintaining low and stable inflation without compromising economic growth. The Bank considers the current stance of monetary policy to be accommodative and supportive of the economic growth as well as anchoring inflation expectations around the medium‐term target. Therefore, Bank of Uganda will maintain the Central Bank Rate (CBR) at 12.0 percent. The band on the CBR will be maintained at +/‐ 3 percentage points on the CBR and the margin on the rediscount rate at 4 percentage points on the CBR. The Rediscount Rate and the Bank Rate will thus remain at 16.0 percent and 17.0 percent, respectively in January 2013.

Prof. E. Tumusiime Mutebile


January 03, 2013

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Currency and Forex News .

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Book a Prisons & Correctional
Charity Tour

Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services

Our Sponsorship Policy

Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages

Uganda Hotels Directory

Uganda Hotels Booking Guide

Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide

The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today

Book My Hotel

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.


Uganda Currency