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 Nicholas.Bariyo@wsj.com


  (END) Dow Jones Newswires
  06-16-21 0706ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.