IMF cuts fiscal 2015/16 GDP growth forecast to 5 pct

GDP growth is at 5 percent "and is expected to remain at that level ... reflecting tight credit conditions and a smaller-than-expected fiscal stimulus", it said late on Wednesday.

A fuel attendant handles Kenyan shilling notes at a petrol station in the capital Nairobi March 15, 2011.    REUTERS/Noor Khamis

The International Monetary Fund (IMF) revised Uganda's growth forecast for the 2015/16 (July-June) fiscal year to 5 percent from the 5.8 percent it predicted in May, the fund said in a statement.

The Bank of Uganda (BoU) has aggressively ramped up its benchmark interest rate this year in response to price pressures fuelled by a weak local currency and surging food costs.

Since April, BoU has raised the Central Bank Rate (CBR) by a total of 600 basis points to 17 percent.

The IMF said "inflation expectations and pressures in the foreign exchange market are subsiding" as a result.

Year-on-year headline inflation rose to 8.8 percent from 7.2 percent in September although core inflation, BoU's target, slowed to 6.3 percent from 6.7 percent over the same period.

The shilling has been broadly firmer since early October but it still down 17.5 percent against the dollar this year.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Alaafin urges Nigerians to shun calls for nation’s disintegration

Bandits free 10 more Kaduna Baptist school students, 11 still in captivity

How do schools and offices revolutionize their attendance checking means with QR codes?

Bianca Ojukwu explains why she shunned APGA gov campaign flag-off in Awka

Sanwo-Olu advocates COVID-19 vaccine equity at Global Citizen Live

NDLEA seizes 3,300kgs of drugs in 4 states

Buhari returns with 'special assignment' from United Nations

Nigeria’s content board Exec Sec Wabote affirms commitment to local content expansion in Africa

NCDC announces 210 additional COVID-19 cases, 2 deaths in 24 hours