CENTRAL BANK RATE HIKES: SMEs warn of risks to all out tightening
After the bank of Uganda aware last week warned of more adjustments in the key policy rate until inflation is brought back down to target levels of 5%, the business community through the small and medium enterprises federations, have advised policy makers that an all-out tightening is mostly likely to affect jobs, productivity and lead businesses to stop investing. Inflation has since climbed 10% in Uganda as the country continues to suffer from slow recovery, and now pressure arising from the Russian-Ukraine war that led to a rise in Energy costs.
