UPDATE 1-Uganda raises key lending rate to 12 pct to curb inflation

April 8, 2015 10:41 AM

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KAMPALA, April 8 (Reuters) - Uganda's central bank raised its benchmark lending rate for the first time since June 2014 to forestall a rise in core inflation caused by a weakening local currency and faster economic growth.

Bank of Uganda Governor Emmanuel Tumusiime-Mutebile told a news conference the bank had raised the rate to 12 percent from 11 percent and said core inflation was seen rising to around 5 percent by the middle of 2015, and to 7.9 percent by June 2016.

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