Uganda cuts key lending rate to 9.0%

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Uganda’s central bank cut its key lending rate to 9.0 per cent on Monday from 10.0 per cent after economic activity slackened, its governor said.

Emmanuel Tumusiime-Mutebile said in Kampala that a benign outlook for inflation had also provided room for easing.

“Economic activity seems to have slackened in the first half of 2019, compared to the second half of 2018,” Tumusiime-Mutebile said.

The cut marks the first time policymakers have changed the rate since a 100 basis points hike in October last year.

The bank targets a medium-term core inflation rate of 5 per cent.