Ugandan central bank maintains benchmark rate at 10 percent

KAMPALA, April 1 (Xinhua) -- Uganda's central bank said on Monday that it would maintain its benchmark lending rate, the Central Bank Rate (CBR), at 10 percent.

Emmanuel Tumusiime-Mutebile, governor of Bank of Uganda, while releasing this month's Monetary Policy, said maintaining the CBR at 10 percent would be consistent with sustainable growth in the economy and achieving the inflation target over time.

He said the economy is projected to be operating around its potential economic growth of 6 percent-6.5 percent.

"The upturn in the Ugandan economy since the beginning 2017 is expected to continue, partly supported by accommodative monetary policy, higher growth in government consumption and investment, strong pick-up in private investment and consumption, and improved agricultural performance," he said.

Although economic growth had picked up, he said there are risks that have emerged.

"Downward risks to the projected economic growth momentum have increased since the previous round of forecasts. The risks largely revolve around unresolved trade tension, which are affecting global and domestic trade and investment activities," he said.

"Elevated political and policy uncertainty in the global economy in an environment of limited policy space could weigh further on global growth and subsequently on Uganda's economic growth," he added.