The motivation at the time was that we felt that the low level of interest rates required to achieve our monetary policy mandate was creating risks to financial stability that we needed to manage. Introducing macroprudential tools, therefore, gave us an “extra degree of freedom,” especially in an environment where the financial cycle and business cycle were out of sync.
The Constitution of the Republic of Uganda and the Bank of Uganda Act 1993 vest the Authority, the Policies and the general management of the affairs of the BOU in the Board of Directors.