Monetary-Fiscal Policy Coordination

Finance Minister Henry Musasizi met the Governor Bank of Uganda Dr. Micheal Atingi-Ego, his Deputy Prof. Augustus Nuwagaba and other Senior Bank officials to discuss ways of strengthening the coordination between the monetary and fiscal policy.
Ministry of Finance and Bank of Uganda play complementary and mutually re-inforcing roles in macroeconomic management and there is a clear memorandum of understanding between MoFPED and Bank of Uganda that establishes clear channels for collaboration and information sharing.

The discussion focused on fiscal consolidation agenda and prudency to support monetary policy effectiveness and macro stability, strengthening cashflow management and forecasting, clearance of domestic arrears and capitalization of the Central Bank.
They also discussed the development of the fixed income and financial markets, including local currency bond market reforms and review of the primary dealer market maker system.
They agreed to strengthen anti-money laundering and combating the financing of terrorism mechanisms to avoid returning to the Financial Action Task Force Grey List.

Musasizi who was flanked by the Minister of State for General Duties, Ciccy Mulondo pledged to support the Central Bank to effectively execute its mandate.
The Governor Bank of Uganda said the Bank remains committed to a strong coordinated partnership with MoFPED grounded in transparency, policy alignment and mutual respect for the complementary mandates.
“We will safeguard macroeconomic stability and advance sustainable inclusive growth for Uganda,” said the Governor.