Moody's Investors Service has today downgraded the long-term issuer rating of the Government of Uganda to B2, from B1, and changed the outlook to stable from negative.

Uganda's central bank cut its benchmark Central Bank Rate (CBR) by 100 basis points to 13.0 percent, saying there is scope to ease its monetary policy stance "to support the domestic economic growth momentum, especially against the ongoing global economic slowdown" as core inflation is forecast to remain around the medium term target in the next 12 months.

Uganda’s central bank is opposed to capping commercial lending rates in the way Kenya has because it could halt lending to smaller firms deemed more risky or encourage banks to lend in foreign currency where the caps don’t apply, a top official said on Wednesday.

Uganda's central bank cut its benchmark Central Bank Rate (CBR) by another 100 basis points as inflation is expected to fall faster than it expected in June as the stability of the exchange rate of the shilling has improved the near-term outlook for inflation.