The volatility in financial markets spread like a contagion through the interconnectedness in markets with the rupee depreciation weighing on the stock market, foreign outflows from the debt market further aggravating the FX markets and impacting yields as also the equity markets. Things have improved considerably since early September though the risks of heightened volatilities persist, as I will shortly discuss.
1  Given that our guests are all legislators, I would like to say a few words about the relationship between Parliament and the central bank, as this relationship is complex and not always well understood. The 1995 Ugandan Constitution confers independence on the Bank of Uganda.