Private sector loans grow by Shs580 million 

Approved loans rose to Shs2.76 trillion for the quarter ended October, according to Bank of Uganda. 
The increase, Bank of Uganda noted in its Monetary Policy Report, was a growth by Shs580 million from Shs2.18 trillion in the quarter ended July, indicating a steady pickup in economic activities in private sector activities. 

However, during the period, the Central Bank noted, the number of approved applications dropped even as value of loans approved loans, particularly in manufacturing and trade sectors, increased.  During the period, approved loan applications fell to 1.15 million from 1.31 million in the quarter ended July. 

Private sector credit, which is a key economic indicator, increased partly due to improved activities in manufacturing, real estate and personal loans, which had declined as a result of lockdown restrictions. 
However, private sector credit growth was sluggish in agriculture, trade, and business sectors
During the period, total private sector credit grew by 9.2 percent from 7.9 percent growth excluding credit extended by Uganda Development Bank. 

“Lending rates increased in quarter ending October, reflecting increased risk aversion and the expiry of the credit relief measures,” Bank of Uganda, said in the report. 
The Central Bank also noted growth in lending rates, which increased from 19.05 percent in September 2021 to 19.66 percent in October across all sectors, with trade, manufacturing and personal loans, registering the highest increases. 

However, prime lending rates averaged at 17.1 percent, declining by 0.1 percentage points from the previous quarter. 
Treasury Bill yields declined, while Bond yields posted a mixed trend in the period ended November. 
All 91, 184 and 364-day yields reduced to 6.84 percent, 8.6 percent and 10.07 percent, respectively from 7.22 percent, 9.17 percent and 10.08 percent, respectively in the quarter ended August.