BoU Slashes Benchmark Interest Rate To 11%
News: The Bank of Uganda (BoU) unexpectedly slashed its benchmark interest rate to 11% from 11.5% for the first time in 2014, stating that slowing inflation gave it scope to support economic growth. All four economists in a Bloomberg News survey expected the BoU to keep the policy rate unchanged. 'The balance of risks remains tilted towards lower inflation and sluggish economic growth. Therefore, a slight easing of monetary policy is appropriate,' BoU Governor Emmanuel Tumusiime-Mutebile said (Bloomberg Businessweek). The BoU forecasts inflation at 6-7% in FY14/15, starting July 1 2014, according to Tumusiime-Mutebile.