Kampala, 29th June 2016: Stanbic Bank, Uganda’s largest bank by assets, has announced a further reduction in its prime lending rate from 24% to 23%, following the announcement of a 1% reduction of the Central Bank Rate (CBR) to 15% by the Bank of Uganda.
“As a bank we track our local currency prime rate against the movements of the CBR, to maintain the transparency of our pricing to our clients. This is the reason why we were one of the few commercial banks that reduced rates the last time the CBR rate was cut in April 2016,” said Patrick Mweheire, Stanbic Bank Uganda’s Chief Executive.
“This further drop in the CBR is welcome; it will stimulate private sector credit growth and ease the pressure on our borrowing clients. Stanbic Bank is proud once again to be a leader in adjusting its rates downwards and we are confident our clients will greatly benefit from our actions,” he added.
High interest rates in Uganda have been a source of major concern to the government, financial planners and economists. At the recent reading of the National Budget both the President and Minister of Finance noted that the rates are prohibitive to businesses and were a deterrent to economic growth.
“A downward revision of the CBR is therefore important because not only will it spur much needed credit driven business growth, it also sends a positive signal to the business community that the time is right for them to start investing and focusing on expansion once again,” said Mr Mweheire.
Stanbic Bank’s revised prime lending rate will be effective for current and new borrowers from the 1st of August 2016.
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