By Moses Ndhaye
The Bank of Uganda has reduced the Central Bank Rate from 12% to 11.5%, in its continued efforts to stimulate demand in the economy.
While releasing the Monetary Policy Statement earlier today, the governor Prof. Emmanuel Tumusiime Mutebile said economic growth estimates for the first half of the financial year 2016/17 indicated that Gross Domestic Product growth was weaker than expected, largely reflecting adverse weather related factors.
He thus puts the projected growth for the year 2016/2017 at 4.5%, down from the 5% earlier recommended by the Monitory Policy Committee.
Mutebile also blames the slowdown of the economy on some temporary external factors.