Recognizing the benefits accruing from the recent technological developments in the financial sector, and being mindful of the need not to stifle innovations, Bank of Uganda put in place interim oversight measures to promote the development of payment systems in Uganda.
I was concerned that this would be misinterpreted by the markets as suggesting that monetary policy was no longer contingent on how the economy evolved. In my view, it was the wrong way of communicating forward guidance. The Summary of Economic Projections provides a better and more natural way to convey the Committee’s sense of the future path of policy.