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Uganda cuts key lending rate to 13 pct

Tuesday, 2 Oct 2012 | 5:43 AM ET

KAMPALA, Oct 2 (Reuters) - Uganda's central bank cut its key lending rate for the fifth straight month on Tuesday to 13.0 percent from 15.0 percent previously, but there were upside risks for inflation to rise due to domestic supply shocks, the bank's governor said.

"The main upside risks to the inflation forecasts are domestic supply shocks, particularly to food production, higher global commodity prices and exchange rate depreciation as a result of the external current account," Governor Emmanuel Tumusiime-Mutebile told a news conference.

(Reporting by Elias Biryabarema; Writing by George Obulutsa; Editing by James Macharia)

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Keywords: UGANDA RATE/