• About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud
Sunday, February 5, 2023
  • Login
  • Register
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

Uganda’s Central Bank Hikes Intrest Rate to 8.5% on the back of the Rising Inflation Rate

Leah WakarimabyLeah Wakarima
July 7, 2022
in Uganda
Reading Time: 3 mins read
Uganda

Uganda’s Central Bank has raised its benchmark policy rate by one per cent to 8.5 per cent in a radical move.

The hike was occasioned by panic amidst surging inflation levels and increased pressure exerted by the US dollar against the local currency as a result of spikes in interest rates registered by developed economies.

This development follows a sudden monetary policy committee meeting held on Tuesday on the back of the latest inflation data, signs of vulnerability exhibited by the local currency against the US dollar, and raging uncertainty over global supply chain shocks caused by the ongoing Russia-Ukraine military conflict.

Fj8qeFoXkAEPAzj
ADVERTISEMENT

“Inflation continues to rise, largely influenced by external cost pressures stemming from higher global food and energy prices, persisting global production and distribution challenges, as well as rising domestic food crop prices due to dry weather across the country…Annual food crop inflation has sharply risen from 0.7 percent in February 2022 to 14.5 percent in June 2022…The MPC considers that the monetary policy stance will have to be tightened even further so as to ensure that inflation eases back to target in the medium-term…” reads the Bank of Uganda (BOU)’s latest monetary policy statement

The latest one per cent increase in the Central Bank Rate (CBR) comes on the heels of a previous one per cent increment announced last month.

Besides growing worries pegged to rising commodity prices in Uganda, increased interest rates tied to treasury bills and bonds plus trading patterns recorded by the local shilling against the US dollar could dominate the Central Bank’s policy radar in the aftermath of the policy announcement.

The Uganda shilling rose by around Ush30 ($0.008) against the US dollar a few hours after the policy rate announcement and closed at Ush3,718 against the green buck on Tuesday.

“The Central Bank may be constrained in tackling supply side driven price shocks but its mandate on matters of ensuring price stability remains. The one percent increase in the CBR seems inevitable to us in a situation of surging inflation. The government raised Ush1.4 trillion ($373.1 million) from the local debt market in June through scheduled bond auctions and also mobilised another Ush748 billion ($199.3 million) through an unscheduled Treasury Bond auction done last month. “Benoni Okwenje, the General Manager for Financial Markets at Centenary Bank Limited.

He further added that those moves have ignited increases in interest rates earned on Treasury bonds of late and this has helped retain some offshore investor interest in this market.

Read also; Worldremit Halts Money Remittances Business in Uganda.


Previous Post

Rising Jet Fuel Prices Likely to Drive African Airlines to $4 Billion Losses

Next Post

Inflation in Turkey Hits 78.6%, the Highest in 24 Years

Related Posts

Uganda

Uganda Central Bank Requests Investors to Transfer April bonds.

February 1, 2023
Uganda

Uganda Begins First Oil Drilling, Targeting Output by 2025

January 25, 2023

Nigerian Commodities Exchange AFEX Expands to Uganda

January 24, 2023

Kenyan Fintech Pezesha Gets License to Operate in Uganda

January 18, 2023

Uganda Terminates $2.2 Billion SGR Contract with Chinese Firm

January 12, 2023

Uganda’s Upgrade of Kampala-Malaba Railway Set to be Completed Next Month

January 5, 2023

Kenya’s Exports to Uganda Decline 21% as US Market Reigns

December 20, 2022

Uganda to Receive $2.5 Million from the UK in Response to the Ebola Outbreak

October 14, 2022
Load More
Next Post
Inflation in Turkey Hits 78.6%, the Highest in 24 Years

Inflation in Turkey Hits 78.6%, the Highest in 24 Years

Follow Us

  • 163.1k Followers
  • 3.6k Subscribers
  • 1.2k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Upcoming Events

There are no upcoming events.

View Calendar
Add
  • Add to Timely Calendar
  • Add to Google
  • Add to Outlook
  • Add to Apple Calendar
  • Add to other calendar
  • Export to XML

Featured

No Content Available

About Us

We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe. Kenyanwallstreet.com is a property of Hisa Technologies Ltd, a financial media & software company.

Contact Us

Kenyan Wall Street
Email: [email protected]
Website: www.kenyanwallstreet.com

Disclaimer

The information contained in this website is for general information purposes only.
Read more..

  • About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud

Copyright 2021. Hisa Technologies. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Aviation
    • Banking
    • Energy
    • Infrastructure
    • Insurance
    • Investment
    • Manufacturing
    • Markets
    • Public Policy
    • Real Estate
    • Startups
    • Technology
  • Podcast
  • Videos
  • Events

Copyright 2021. Hisa Technologies. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

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

Log In