BOU to hold bi-monthly MPC meetings

Mutebile 3

The Bank of Uganda will now hold bi-monthly Monetary Policy Committee meetings to give regular updates on the interest rate decisions.

In a statement, the Governor Emmanuel Mutebile says the meeting will be held on the 10th working day of the month effective from the start of the new fiscal year.

Mutebile says the move is meant to allow more time for incorporating economic data from the previous month into the analysis which then forms the interest rate decision.

The less frequent policy adjustments are expected to support business planning processes and foster economic growth.

Meanwhile,  the Central Bank has expressed concern over the weakening shilling.

The exchange rate movements over the last few days are largely attributed to increased corporate demand for foreign currency.

At the beginning of the week, the strength of the shilling dropped significantly against the major foreign currencies especially the US dollar.

The dollar is currently trading between 2600 and 2500 shillings a trend analysts have described as above normal.

Now the Bank of Uganda Assistant Communication director Kelvin Kiyinji says the bank is also concerned about the weakening shilling, adding though that it has sufficient reserves incase intervention is required to stabilize the market.