to today ’ s event, the new acacia mall is in a very strategic location, as illustrated by the number of banks that have established outlets at this mall. the “ sapphire banking lounge ” at this branch is designed to offer orient bank ’ s customers a first class banking experience. i also have no doubt that orient bank ’ s existing menu of products will appeal to the customers of this branch and that the bank will continue to focus on providing quality services for its customers. the bank of uganda, as uganda ’ s monetary and regulatory authority, remains committed to ensuring price stability and a sound financial system. we shall continue to conduct vigorous financial sector regulation and supervision to ensure that all banks are well capitalised and that they have robust risk management frameworks. bis central bankers ’ speeches with these remarks, i once again commend the shareholders, the board of directors and senior management of orient bank for extending their branch network to bring banking services nearer to the people. it is now my honour and pleasure to declare orient bank ’ s branch acacia mall kampala officially open. thank you for listening. emmanuel tumusiime mutebile ( prof. ) governor, bank of uganda bis central bankers ’ speeches

inflation aim in a sustained manner. let me now explain our assessment in greater detail, starting with the economic analysis. quarterly real gdp growth moderated to 0. 4 % in the first quarter of 2018, following growth of 0. 7 % in the previous three quarters. this easing reflects a pull - back from the very high levels of growth in 2017 and is related mainly to weaker impetus from previously very strong external trade, compounded by an increase in uncertainty and some temporary and supply - side factors at both the domestic and the global level. the latest economic indicators and survey results have stabilised and continue to point to ongoing solid and broad - based economic growth, in line with the june 2018 eurosystem staff macroeconomic projections for the euro area. our monetary policy measures, which have facilitated the deleveraging process, continue to underpin domestic demand. private consumption is supported by ongoing employment gains, which, in turn, partly reflect past labour market reforms, and by growing household wealth. business investment is fostered by the favourable financing conditions, rising corporate profitability and solid demand. housing investment remains robust. in addition, the broad - based expansion in global demand is expected to continue, thus providing impetus to euro area exports. the risks surrounding the euro area growth outlook can still be assessed as broadly balanced. 1 / 2 bis central bankers'speeches uncertainties related to global factors, notably the threat of protectionism, remain prominent. moreover, the risk of persistent heightened financial market volatility continues to warrant monitoring. euro area annual hicp inflation increased to 2. 0 % in june 2018, from 1. 9 % in may, reflecting mainly higher energy and food price inflation. on the basis of current futures prices for oil, annual rates of headline inflation are likely to hover around the current level for the remainder of the year. while measures of underlying inflation remain generally muted, they have been increasing from earlier lows. domestic cost pressures are strengthening and broadening amid high levels of capacity utilisation and tightening labour markets. uncertainty around the inflation outlook is receding. looking ahead, underlying inflation is expected to pick up towards the end of the year and thereafter to increase gradually over the medium term, supported by our monetary policy measures, the continuing economic expansion, the corresponding absorption of economic slack and rising wage growth. turning to the monetary analysis, broad money ( m3 ) growth increased to 4. 4 % in june 2018, up from 4. 0 % in may. m3 growth continues to