With respect to monetary policy, the Bank of Uganda will continue to pursue the objective of preserving foreign reserves and maintaining macroeconomic stability. This is important because the outlook for capital inflows of all forms (FDI, portfolio, remittances) is declining.
We need to better understand how macroprudential policies – such as mortgage insurance rules – that are aimed at promoting financial stability interact with monetary policy. Above all, our experience of these past few years reminds us that, as economists, there is a great deal that we just do not know.