BoU maintains lending rate at 10 percent

By Moses Kyeyune.

The Central bank has maintained its lending rate to commercial banks at 10 percent, similar to last month.

In the monetary policy statement for February, issued today at the Central Bank headquarters in Kampala, the Governor Bank of Uganda Prof Emmanuel Tumusiime Mutebile has said the band on the Central Bank Rate will remain at +/-3 (plus-minus three) percentage points and the margin on the re-discount rate at 4 percentage points on the Central bank rate.

Consequently, the re-discount rate and the bank rate have been set at 14 percent and 15 percent, respectively.

This, according to the governor will boost private sector growth, especially in the banking sector and subsequently, the investment community since commercial banks will be able to lend at affordable