BOU Speaks out on High Interest Rates

The Central Bank has blamed the persistent high interest rates on the high operation cost for financial institutions in the country. Bank of Uganda Governor Professor Emmanuel Tumusiime Mutebile says the high operating costs are brought about by trying to establish more branch networks in the country, getting and maintaining staff to run these branches. To Mutebile, until these operating costs are cut in a financial sustainable manner and without compromising service delivery to customers, the interest rates are likely not to reduce soon.