Uganda central bank holds key lending rate, sees faster GDP growth

KAMPALA: Uganda's central bank held its key lending rate on Tuesday and forecast faster economic growth for 2019/20.

Bank of Uganda Governor Emmanuel Tumusiime-Mutebile said the bank had held the level at 10.0pc, the fourth time it kept the rate unchanged.

He forecast the economy to expand 6.3pc in 2019/20 (July-June), compared with 6.1pc in 2018/19.

"Indicators of real economic activity and business and consumer confidence indicate favourable economic growth prospects in the near term," he told a news conference.

Tumusiime-Mutebile said escalating global trade tensions, local unfavourable weather and delays in infrastructure projects could dampen economic activity.

Headline inflation was 3.3pc pct in May from 3.5pc the previous month while annual core inflation, which the central bank tracks for monetary policy purposes, declined 4.6pc in May from 4.8pc a month earlier.