Bank of Uganda has assured Ugandans, particularly customers of Barclays Bank, that the scandal over cooked up lending rates shaking the global bank\'s headquarters in London, won\'t affect its local subsidiary in Uganda.
The less than one percent decline in inflation in June was enough for the central bank to lower the inter-bank lending rates from 20 percent to 19 percent for the month of July. Dr Louis Kasekende, the deputy governor of Bank of Uganda, attributed the decline in the Central Bank Rate (CBR) to favourable external and internal factors that have seen core inflation drop from 18.6 percent to 18.0 percent in June.
There was a marginally small fall in inflation from 18.6 percent in May to just 18.0 percent in June, according to the latest figures from the Uganda Bureau of Statistics (UBOS). In its report for June, UBOS also announced that the economy grew by 2.4 percent in the last quarter of the just ended financial year 20111/12.