Stanbic Bank cuts interest rates

Kampala, Uganda | THE INDEPENDENT | In response to the October monetary policy statement by the Bank of Uganda and the decision to reduce the Central Bank Rate by 0.5 percentage points to 9.5 %, Stanbic Bank has matched the Central Bank’s rate cut by reducing its Prime Lending Rate from 18% to 17.5% effective January 01, 2018.

Announcing the development, Sam Mwogeza – Chief Financial Officer Stanbic Bank said they maintaining transparency in their pricing to its clients.

BOU initiated easing of the monetary policy in a bid to boost economic activity through private sector driven credit after interest rates peaked at a four year high of 28% in Q1 2016 reducing the appetite for risk and borrowing.

The policy has so far yielded mixed results with inflation coming under control, though demand for credit has remained sluggish prompting BOU to act once again.