Mutebile, who was reading the February monetary policy statement on Thursday afternoon, said very few banks have taken his advice but he continues to struggle with most of them so that they can reduce lending rates for Ugandans.
Razia Khan, Standard Chartered Banks Chief Economist for Africa, says they forecast that due to the rise in inflation in September to 7.2 percent from 4.8 percent year-on-year, the central bank is likely to increase the CBR from 16 percent to 17 percent.
Al Hilal Bank according to Dubai\'s National Business daily is partnering with Hind Al Oud perfume manufacturer that specialises in musky Arab scents to create a themed card targeting women. Al Oud will also provide complimentary perfumes alongside the perfumed MasterCard.
The Shilling has been under pressure from the Dollar due to the demand for the latter on the international market. This has been coupled with rising demand for imports as the holiday season approaches.
Figures released by Bank of Uganda (BOU) indicate that households borrowing from commercial banks increased by 38percent from a decline of 13percent in 2012. Dr Louis Kasekende, the deputy BOU Governor, while releasing the Monetary Policy Statement for February 2014, noted that for the first time, there had been increase in credit to households, and that this would boost demand.
The reluctance by commercial banks to lower further the lending rates on loans has forced the private sector to stagnate on borrowing, according to Bank of Uganda’s deputy governor.
Businessmen in Jinja are calling for financial institutions to reduce on interest charged on loans as a reflection of a drop in the central bank lending rates.
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.
