The Bank of Uganda has maintained the Central Bank Rate at 7% according to the monetary policy statement released yesterday.
The impact of Covid-19 on the economy has been big with most hit sectors being education, hospitality, and tourism among others.
The Deputy Governor Dr. Michael Atingi-Ego said the economy is projected to grow at 3.5% this financial year but growth will increase to 7% next financial year (2021/2022).
He said Uganda’s export markets to COMESA may be affected due to the expected sluggish Covid-19 vaccine rollout.
Annual headline inflation (for goods whose prices are very volatile) in January 2021 edged up slightly to 3.75% from 3.6% in December in part due to the increase in in food and energy prices
However, core inflation (For goods whose prices are not volatile) declined to 5.5% from 5.9% representing a 4% drop.
In addition, the BoU pledged to extend for six months ,effective 1st April 2021 the COVID-19 relief measures to financial Institutions that may come under liquidity stress owing to the pandemic to sup