No hope for reduction in interest rates

The recent reduction in the central bank rate will not automatically translate into a cut in the lending rates.

The Bank of Uganda this week announced reduction of the Central Bank Rate that had stagnated at 11.5% for the last five months to 11%.

However players in the sector say their next move will be determined by the cost of funds from the central bank among other factors.

We spoke to Deputy Director Housing Finance Bank Paul Musoke, UBA Executive Director Wilbrod Humphrey Owor and Centenary Bank’s Fabian Kasi

Currently interest rates charged by commercial banks range between 20% and 22%.