Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Uganda Central Bank Cuts Key Lending Rate to 6.5% From 7% -- Update

06/16/2021 | 06:01am EDT

By Nicholas Bariyo

KAMPALA, Uganda--Uganda's central bank cut its benchmark lending rate by 50 basis points on Wednesday, the first cut in 12 months as the country seeks to spur growth amid renewed economic disruptions caused by a surge in coronavirus infections.

The central bank cut the key lending rate to 6.5% from 7%, noting that despite subdued inflation, the resurgence of the coronavirus and more contagious variants pose fresh threats to growth. Uganda imposed a new lockdown earlier this month to stem surging coronavirus infections.

"Contraction in private sector investments is persisting, partly reflecting heightened Covid-19-induced uncertainties," Central Bank Governor Emmanuel Tumusiime-Mutebile said in a statement.

After posting a 1.1% contraction last year, the central bank expects economic growth to rebound to around 3.3% in 2021.

In the 2020-21 fiscal year, Ugandan coffee production--the country's top-earning export crop--jumped nearly 60%, aided by maturing plantations and favorable weather conditions. Furthermore, France's TotalEnergies SE hopes to commence oil production at its Ugandan oil fields in the next three and a half years.

However, the central bank notes that sector unevenness of economic recovery and a weak level of business investment requires monetary policy support. Slow Covid-19 vaccinations also continue to pose a risk to the country. Less than 40,000 people are fully vaccinate across the country of 42 million people.

Analysts at South Africa-based NKC African Economics said the central bank will likely maintain an accommodative monetary policy for the rest of the year as the country recovers from the effects of the pandemic.

Write to Nicholas Bariyo at nicholas.bariyo@wsj.com

(END) Dow Jones Newswires

06-16-21 0801ET

Latest news "Economy & Forex"
12:32pTunisian president calls on banks to reduce interest rates
RE
12:22pUNESCO UNITED NATIONS EDUCATIONAL SCIENTIFIC AN : IPCSD | Culture for Climate Action
PU
11:52aIndonesia's Lion Air to furlough 8,000 staff due to COVID travel restrictions
RE
11:46aU.S. Senate in rare Saturday session on $1 trln infrastructure bill
RE
11:30aTunisian president calls on banks to reduce interest rates
RE
11:02aMINISTRY OF COMMERCE AND INDUSTRY OF REPUBLIC : “Services Trade between India and the U.S will play a very important role in our ever-growing relations – Piyush Goyal”
PU
09:20aAs cases surge, Thai hospital uses containers to store bodies
RE
08:42aTVA TENNESSEE VALLEY AUTHORITY : Demolishes Coal Plant for Development and Cleaner Energy
PU
07:59aMore countries hike climate pledges, piling pressure on major emitters
RE
07:53aOlympics-Organisers seek to prevent heatstroke with AI gadget
RE
Latest news "Economy & Forex"