Business community decry CBR increment

By Ritah Kemigisa.

The local business community has expressed fear that raising interest rates will cripple many of their businesses.

Their outcry comes after the Bank of Uganda announced a raise in the central bank rate (CBR) from 9% to 10%.

Now the Hardware World Chief Executive officer Simon Ssekanya tells KFM that increasing the lending rates is not only bad for business but also affects the consumer.

This he says is because the rates increase the cost of borrowing a burden that is always put on the consumers inform of high prices.

He meanwhile says for those involved in the capital intensive building and construction industry have postponed projects because they cannot borrow money due to the high interest rates.

The Central Bank rate is key in determining the interest rates but also shows whether the economy is doing well or no