Commercial banks working to lower interest rates - UBA

Uganda Bankers Association has said commercial banks are working in line with the Central Bank to lower interest rates.

Commercial bank interest rates current average at 20 per cent.

UBA made the commitment in response to Bank of Uganda Governor Emmanuel Tumusiime Mutebile, who, while releasing the Central Banks Rate (CBR) for February 2020, said commercial banks continue to charge high interest rates despite efforts by the central bank to lower them.

Speaking in an interview, Ms Patricia Atim, the UBA public relations officer, said commercial banks have created initiatives through which lower interest rates can be obtained.

“We are making every effort to make sure that all commercial banks adhere to central banks guidelines,” she said, noting that all commercial banks exist because of customers.
Mr Mutebile showed concern about the high interest rates that have impeded access to growth.

“Only a few commercial banks have complied with central bank’s guidelines to keep interest rates low,” he said, noting that the central bank was wondering what action it can take given that government liberalised the banking sector.