KAMPALA Dec 14 Uganda's central bank cut its
main lending rate on Wednesday to 12 percent from
13 percent, saying there was still a need to boost economic
Policymakers in the East African nation began cutting the
benchmark rate in April, bringing it back down from the peak of
17 percent reached as the bank battled a surge in prices.
"In line with efforts to keep the domestic economic growth
momentum, the BoU (Bank of Uganda) believes that there's scope
to continue easing monetary policy," bank governor Emmanuel
Tumusiime-Mutebile told a news conference.
He said inflation was expected to edge up in the short term,
but it would remain on course for its 12 month target of 5
percent, adding the shilling was under pressure from
"These factors could continue to cause volatility in the
exchange rate," he said.
(Reporting by Elias Biryabarema; Writing by Duncan Miriri;
Editing by Tom Heneghan)