The Bank of Uganda (BoU) is a 100% State owned Bank Established 15 August 1966, under the Bank of Uganda Act 1966. The Bank is in charge of Monetary Policy and Monetary policy decisions are made by the Monetary and Credit Policy Committee. The members are the Governor, Mr. Emmanuel Tumusiime Mutebile, the Deputy Governor, Mr. David Opiokello, Executive Directors and Director Research (Secretary). Other Directors and Officers attend on invitation.
The Bank of Uganda’s roles of monetary policy management and financial sector regulation and supervision were strengthened when the government of Uganda granted it autonomy in the Constitution of the Republic of Uganda Article 162 (2).
The government sought to establish a foundation for sustained macroeconomic stability through a credible policy framework that would overcome the age old problem of ‘time-inconsistency’ – the temptation to pursue policies for short-term gain at the expense of long¬term stability. An independent central bank is empowered to take a long term view to build credibility. The Bank is therefore, a vital part of Uganda’s long term program to transform and modernize the country.
The BoU has established a record of meeting the government’s target of low and stable inflation from 1993 to-date. The Bank has tremendously improved prudential regulation and supervision of the financial sector. Consequently, public confidence in the commercial banks has strengthened as evidenced in increasing levels of domestic savings and growth of the financial sector.