Traders in Kampala. According to Bank of Uganda the country's GDP growth target of 4.5 per cent for the 2016/17 financial year is unlikely to be achieved due to depressed economic activity. PHOTO|FIlE
Uganda’s central bank cut its key policy rate by 0.5 per cent to 11 per cent Wednesday. The decision is linked to concerns about depressed economic activity, signs of rebound posted by credit flows and a fairly stable inflation outlook.
Weak government spending, severe drought, low Foreign Direct Investment flows particularly in the oil and gas sector and the economic slowdown experienced in major regional export markets including South Sudan and the Democratic Republic of Congo have weighed down on the country’s growth outlook this financial year.
