• Contact Us
  • About Us
  • Advertise
  • Donate
  • Login
Watchdog Uganda
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
Watchdog Uganda
No Result
View All Result

CBR adjustment: Bank of Uganda implements first rate cut in two-year span

Mourice Muhoozi by Mourice Muhoozi
2 years ago
in Business, Finance
2 0
Dr. Michael Atingi-Ego

Dr. Michael Atingi-Ego

ShareTweetSendShare

The Bank of Uganda (BOU) has implemented its first rate cut in a span of two years, lowering the Central Bank Rate (CBR) to 9.5 percent.

This move, aimed at stimulating economic growth, comes amidst a backdrop of evolving global economic dynamics and local fiscal challenges. With this decision, the central bank seeks to  decrease the cost of credit which would in turn bolster lending, investments, and consumer spending, that  have all been under pressure due to the recent economic uncertainties.

This reduction comes after a period of consistent increase, with the rate climbing from 6.5 percent in April 2022 to 10 percent in October 2022, a level maintained until the recent statement in June 2023.

The decision to cut the CBR was driven by the sustained decline in inflation, which dropped from 10.8 percent at the start of the year to 3.8 percent in July 2023.

This figure represents the lowest inflation rate observed in the past 15 months, as reported by the Uganda Bureau of Statistics (UBOS).

Michael Atingi-Ego, Deputy Governor, attributes this reduction in inflation to lower prices of agricultural and imported goods, a slowdown in global economic activities, and decreased domestic demand.

Despite the rate cut, the Bank of Uganda remains cautious about lingering global and domestic risks. Michael Atingi-Ego notes that although there are uncertainties, there is a higher level of confidence that global inflation, demand, and economic recovery will remain subdued for an extended period. This suggests the potential for continued inflation suppression.

Looking ahead, Dr. Atingi-Ego highlights the need for economic support over the next two years to boost economic activity, given the perceived weakness in the global economic situation.

The suspension of new credit to Uganda by the World Bank has raised concerns about its potential impact on the country’s economic forecasts. Atingi-Ego noted that it is difficult to predict the consequences until the Ministry of Finance compiles a list of affected projects and determines its response.

The Deputy Governor further explored potential outcomes for Uganda in light of the loan suspension from a major lender. He highlighted that the options available could be expensive.

For instance, if the government chose to increase domestic borrowing, reduce the budget, or reallocate resources, there’s a risk of affecting the country’s foreign reserves.

The Bank acknowledged Uganda’s resilient economy, which had been recovering well despite the global growth challenges, achieving an estimated annual growth of 5.3 percent in 2022/23. However, it pointed out that economic growth appeared to be slowing due to weak domestic demand.

Data from the Uganda Bureau of Statistics revealed a significant decline in economic growth in the second and third quarters of 2022/23, primarily driven by a 21.6 percent contraction in agriculture, along with negative growth rates of 2.3 percent in the industry sector and 1.39 percent in services.

Looking forward, the expectation is for a gradual economic recovery, with projected growth ranging from 5.0 percent to 6.0 percent in the fiscal year 2023/24. This recovery is anticipated to be driven by increased private sector consumption, investments in extractive industries, and improved exports, as highlighted by the Bank.

As businesses and individuals anticipate the effects of this rate cut on borrowing costs and overall financial landscape, experts remain cautiously optimistic about its potential to reinvigorate the nation’s economic trajectory.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
ShareTweetSendShare

Related Posts

Sudhir Ruparelia is the undisputed king of Kampala
Business

Why Sudhir Ruparelia is Ahead of John Bosco Muwonge in the Class of Billionaires

8th July 2025 at 00:42
Business

See #Paradise Island Resort: Sudhir’s Luxurious Eco-Retreat Island on Lake Victoria

6th July 2025 at 15:29
Business

CAN JOHN BOSCO MUWONGE CLAIM A SPOT AMONG AFRICA’S WEALTHIEST?

5th July 2025 at 18:09
Next Post

MPs call for increased deployment at South Sudan border

  • Prostitution in Uganda- Courtesy Photo

    10 dangerous hotspots known for prostitutes in Kampala

    1118 shares
    Share 447 Tweet 280
  • Silent Billionaire Bosco Muwonge Buys Mukwano Arcade at UGX 250 Billion Cash Down

    45 shares
    Share 18 Tweet 11
  • LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

    2287 shares
    Share 915 Tweet 572
  • Who is Bosco Muwonge, Uganda’s elusive real estate billionaire?

    29 shares
    Share 12 Tweet 7
  • Uganda’s Billionaires 2025: Once Again Sudhir Ruparelia Leads a Resilient Pack

    46 shares
    Share 18 Tweet 12
Facebook Twitter

Contact Information

Watchdog Uganda is a portal for solution journalism, trending news plus cutting edge commentaries in the fields of politics, security, business, tourism, entertainment, technology, agriculture, climate change, environment, public health et al. We also give preference to Ugandan community news and topical discussions. The portal also publishes community news and topical discussions.

Email: editorial@watchdoguganda.com
To Advertise:Click here

Latest News

NRM youths once again beat NUP with 90% victory in Kassanda district, MPs Kabuye, Nsamba fear for their seats

8th July 2025 at 11:13

Reason Over Regulation: President Yoweri Museveni Urges Ugandans to Embrace Science and Reason in Natural Resources Management

8th July 2025 at 09:15

Check out

  • Trending
  • Comments
  • Latest
Minister Muruli Mukasa

LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

24th May 2020 at 10:45
Pregnant woman

Shock as 17-year old boy impregnates his two sisters during Covid-19 lockdown 

17th June 2020 at 08:17
Sudhir Ruparelia is the undisputed king of Kampala

Billionaire Sudhir’s wisdom on how to invest in real estate

0

How a boy’s destiny turned from cotton grower to communications guru

0

NRM youths once again beat NUP with 90% victory in Kassanda district, MPs Kabuye, Nsamba fear for their seats

8th July 2025 at 11:13

Reason Over Regulation: President Yoweri Museveni Urges Ugandans to Embrace Science and Reason in Natural Resources Management

8th July 2025 at 09:15

© 2025 Watchdog Uganda

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News

© 2025 Watchdog Uganda