Central bank explains policy tightening
Bank of Uganda says Uganda’s economy is still struggling with high inflation which has a distortive impact on the financial wellbeing of households. Sulaiman Nyanzi, Assistant Director, of Economic Research says BoU uses inflation targeting to adjust interest rates, in line with the inflation and future projections. Inflation forecast is influenced by aggregate demand, the exchange rate, and movement in international commodity prices among others. Rachel Nabisubi reports.
