A broad consensus has emerged about the aggregate effects of interest rate policy. The econometric models, mainly structural vector autoregressions, show that policy rate changes have significant effects on both inflation and economic activity. Maximum effects occur with a lag, with the impact on inflation taking somewhat longer to materialise than the impact on the real economy.
Both of these industries are at the forefront of Uganda’s efforts to modernize and diversify its economy, through the production of higher value goods and services which can compete on international markets. To be competitive on global markets, our domestic traded goods industries, such as tourism and horticulture, need access to first class financial services of the type which Bank of Baroda can provide.