Uganda Central Bank Cuts Key Lending Rate to 6.5% From 7%

KAMPALA, Uganda--Uganda's central cut its benchmark lending rate by 50 basis points on Wednesday, the first cut in 12 months as the coffee-producing country seeks to spur growth amid renewed economic disruptions caused by a surge in coronavirus infections.

The central bank noted that despite subdued inflation, the resurgence of the coronavirus and more contagious variants pose fresh threats to growth.

"Contraction in private sector investments is persisting, partly reflecting heightened Covid-19-induced uncertainties," Central Bank Governor Emmanuel Tumusiime-Mutebile said in a statement.

Write to Nicholas Bariyo at

  (END) Dow Jones Newswires
  06-16-21 0706ET
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