Moreover, further depreciation will be counterproductive for macroeconomic management, especially because of the impact this will have on the prices of imported goods and hence on consumer price inflation. Consequently, the Bank of Uganda intends to adopt a more aggressive stance to support the exchange rate. We sold dollars yesterday to the interbank market. We are prepared to intervene again if necessary.
Our signal is clear, that macroeconomic stability provided us rooms for monetary easing for supporting economic growth through interest rate cuts and ample liquidity in the banking system. Eventhough there is still room, we will be cautious in deliberating our further monetary easing.