Bank of Uganda has raised the Central Bank Rate by 1.5 percentage points from 13 percent to 14.5 percent in July 2015.
According to a Monetary Policy statement, issued by Governor Prof. Emmanuel Tumusiime –Mutebile, BoU governor, the recent exchange rate depreciation has raised the risk of higher inflation.
In his Monday statement which was supposed to be released in Augsut, Mutebile said the central bank aimed at addressing the depreciating shilling, rising inflation and high interest rates.
By Monday morning, the shilling was trading at Shs 3,250.22 only to hit Shs 3,246.52 by midday.
Mutebile said BoU will continue to asses the risks until the situation is resolved.