June 25, 2014 / 2:09 PM / 5 years ago

Uganda central bank cuts monetary policy meetings to every two months

KAMPALA, June 25 (Reuters) - Uganda’s central bank will hold monetary policy meetings and make rate announcements every two months instead of every month, it said on Wednesday, aligning policy with regional partners and helping businesses plan ahead better.

Under the new system, the next policy committee meeting would be on Aug. 14 instead of in early July.

Since July 2011, when Bank of Uganda changed its policy focus to target inflation and introduced the Central Bank Rate (CBR), the committee has held monthly meetings.

“The less frequent policy adjustments will further support the planning processes of businesses ... and better align Uganda’s monetary policy framework with those of other (regional)... partner states,” the bank said in a statement.

The CBR stands at 11 percent, having peaked at 23 percent in 2011, when inflation surged.

The central bank said the longer interval in the policy adjustment would also “strengthen further the monetary policy framework” and macroeconomic analysis that goes into setting the the interest rate.

Reporting by Elias Biryabarema; editing by John Stonestreet

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