Bank of Uganda …

Uganda inflation reduces to 14 percent
Bank of Uganda building
KAMPALA-By Lutaya Shafiq

Uganda’s year-on-year inflation fell for the fifth straight month to 14.3 percent in July from 18.0 percent in June, thanks to a drop in food prices, the statistics office said on Tuesday, opening the way for more rate cuts.

Like other east African nations, the coffee-producing nation of 33 million people suffered from high inflation and a sharp weakening of the currency against the dollar, causing popular protests in 2011 that turned violent as police broke them up.

But the rate of inflation has been falling in recent months on the back of very tight monetary polices as well as base effects due to comparison with last year’s inflation, falling to its lowest in 14 months in July.

“Going forward we should expect a gradual slowdown in inflation. We might not see a sharp move like this one, which was caused by the harvest season going on,” said Christopher Makombe, a trader at Standard Chartered bank.

The Uganda Bureau of Statistics said substantial declines in the prices of Irish potatoes, beans, vegetables, rice and fish were recorded during the month.

Core inflation fell to 15.4 percent from a revised 19.6 percent in the previous month, the statistics office added, firmly pointing to a rate cut when policymakers meet on Aug.2.

“It has increased possibility of a further cut in the Bank of Uganda rate,” said Makombe.

“We might see a knee-jack reaction in the shilling when they cut, but it may go back to the current levels because offshore (investors) are still keen on Uganda debt.”

The Bank of Uganda won praise for ramping up its Central Bank Rate quickly as inflation accelerated in 2011, taking the key lending rate to 23 percent.

As inflation started to slow from a 2011 peak of over 30 percent in October, the central bank also began trimming its key rate, lopping one percentage point off in both February and March to leave it at 21 percent until this month.

“The high base effect from last year is now a factor and I think the Uganda central bank need to be cut and cut sharply,” said Aly Khan Satchu, an independent trader and analyst in Nairobi, adding high rates could pull in hot money from abroad.


59 responses to “Bank of Uganda …

  1. wyroby z betonu

    Hey, you used to write fantastic, but the last few posts have been kinda boring… I miss your super writings. Past few posts are just a little bit out of track! come on!

  2. Perilous Peter

    nice page very happy with what youve done

  3. Bobby Glausier

    I simply want to mention I’m very new to blogging and absolutely liked you’re web site. Most likely I’m likely to bookmark your website . You definitely come with impressive stories. With thanks for sharing your web-site.

  4. Cheers Chaps

    nice site, so jealous right now

  5. Elizabeth Saxe-Coburg Gotha is a satanic peadofile Queen

  6. My brother recommended I might like this web site. He was entirely right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  7. Saturnina Zeckzer

    Aw, this was a really nice post. In concept I would like to put in writing like this additionally – taking time and precise effort to make a very good article… however what can I say… I procrastinate alot and under no circumstances seem to get something done.

  8. stretch film

    I have been absent for a while, but now I remember why I used to love this blog. Thanks, I’ll try and check back more often. How frequently you update your web site?

  9. web design london ontario

    Join VIP member to get more high quality link lists:

  10. Escort girl Paris

    As I website owner I think the subject matter here is very fantastic , thankyou for your efforts.

  11. I like the efforts you have place in this, be pleased about it for all the enormous content.

  12. cheap house painters brookfield

    I Will have to visit again when my course load lets up – nonetheless I am taking your Feed so i can read your site offline. Cheers.

  13. Youre not the overall blog article writer, man. You totally have a bit important to bring about the web. Such a fantastic blog. Unpleasantly gain yet again pertaining to further.

  14. masters education

    Have you considered adding some differing opinions to the article? I think it might enhance viewers understanding.


    I have got one idea for your web site. It seems like right now there are a handful of cascading stylesheet issues while opening a selection of webpages in google chrome as well as internet explorer. It is functioning fine in internet explorer. Possibly you can double check this.

  16. Check This Out

    An amazing share, I merely known this onto any colleague who had been doing fairly psychoanalysis for this. Plus he in certainty bought me breakfast since I bring into being it pertaining to him.. grin. As a result i fancy to modify that: Thnx for the treat! Nevertheless agreed Thnkx with regard to spending time to natter in relation to this, I come across glaringly regarding it and enjoy conception further proceeding this topic. If reasonable, as you feel expertise, would anyone mind updating your blog with added details? It can live substantially ideal on behalf of me. Big browse awake merely on behalf of this blog post!

  17. utorrent download

    What’s Intriguing place i’m new to this, I stumbled ahead this I have exposed It utterly practical and it has helped me absent heaps. I am hoping to impart a contribution & aid additional users like its helped me. Great job.

  18. painter brisbane

    rather useful material, all round I picture this is worthy of a bookmark, cheers

  19. arbonne skin care

    Good Stuff, do you have a flickr account?

  20. All I can read here is significantly important.

  21. I love what I can read here.

  22. Incredibly well-written blog.

  23. Incredibly well-written blog.

  24. forum internetowe

    All I can read here is significantly important.

  25. Thos blog is great. I have all I have always needed.

  26. super katalogi

    Impressive! I mean it.

  27. seokatalog

    Fantastic! All I read is so wise and noteworthy.

  28. mocne katalogi stron

    I can’t believe how lucky I am that I visited this blog.

  29. mocny katalog stron

    I love what I can read here.

  30. stron katalog

    I’m impressed, indeed.

  31. katalog seo

    All I can read here is significantly important.

  32. stron katalog

    This blog is amazing.

  33. Katalog stron

    This blog is amazing.

  34. Busy z anglii do polski

    This blog helped me broaden my horizons.

  35. mocne katalogi stron

    This blog is good that I can’t take my eyes off it.

  36. Anglia busy

    Due to this bog I learnt a lot!

  37. stron katalog

    Thanks to this blog I deepened my knowledge.

  38. Bus anglia

    This blog is very educational.

  39. Katalog stron

    I’d very pleased if I could find more such good blogs.

  40. Bus londyn polska

    Very intriguing comments!

  41. Mocny katalog

    I’m inspired to write my own blog.

  42. Mocne katalogi

    I’m shocked how good this blog is.

  43. Bus anglia

    I’m amazed. This blog is excellent.

  44. dobry katalog

    Fantastic. How do you do this that this blog is so good?

  45. Anglia bus

    This blog should exist forever.

  46. mocne sinooke

    Awesome blog!

  47. Busy z anglii

    This blog helped me broaden my horizons.

  48. Anglia bus

    All I can read here is significantly important.

  49. mocny katalog stron

    I love this blog.

  50. katalogi sinooke

    I’m so lucky that I came across this blog.

  51. Mocny katalog

    Very intriguing comments!

  52. Katalog Sinooke

    Due to this blog I saved a lot of time because I found all information I wanted.

  53. super katalogi

    I like this blog very much.

  54. katalog stron

    I can’t believe how lucky I am that I visited this blog.

  55. mocne katalogi stron

    I love what I read.

  56. Bus anglia polska

    Amazing how good it is.

  57. Paczka do uk

    Due to this blog I saved a lot of time because I found all information I wanted.

  58. katalogi sinooke

    I like this blog very much.

  59. Hipolito M. Wiseman

    Outstanding post however I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit more. Appreciate it!

Like this post!! Add Your Comment here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s