On Tuesday 5th July 2022, Bank of Uganda raised the central bank rate, also known as central bank interest rate, to 8.5%, up from 7.5% as it has been, indicating a one percentage point increase.
It also raised the Cash Reserve Requirement by two percentage points to 10%.
“The Central Bank raised the CBR today to 8.5% [One percentage point] and also, in the smaller print, raised the cash reserve requirement for banks by 2 percentage points to 10% to deal with the inflation.
Economic growth projections are still high at 6.5% – 7% b’se of Oil.” a tweet from Raymond Mujuni, an investigative journalist, read.
This essentially means that commercial banks are likely to increase their lending rates in the near future as well, making loans more expensive to acquire in terms of interest paid.
