Rising food prices and the effects of exchange rate depreciation have pushed up the cost of living in the region. Save for Tanzania and Burundi, EAC states have all recorded a rise in inflation in September.
Mid last week, Uganda’s central bank raised its benchmark lending rate from 16 per cent to 17 per cent in a bid to ease inflationary pressures.
Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile, said that the bank’s decision to increase the CBR by 5 per cent since April has dampened inflationary pressures.
“We have increased the CBR to ensure that in the medium term, the inflation edges towards the BoU policy target of 5 per cent,” Prof Mutebile said. Read more. Source | East African