that the decision taken shall deliver the publically announced inflation target. for example, if the public is made to expect higher inflation and does not believe in the ability of the central bank to reign in on this inflation ; it will result in a self - fulfilling episode where firms will adjust their prices, leading to higher actual inflation. naturally, this means that the media is a critical component of the policy transmission mechanism and efficient communications is essential for the credibility of the entire policy framework. as a result, the bou has revamped its communications policy to support the implementation of the inflation targeting - lite policy framework. we hold a press briefing immediately after the bimonthly interest rate setting meeting to which all the media are invited. in addition to the detailed monetary policy report issued after the press briefing, our communications department is always willing to respond to questions from the media and to arrange for senior staff to be interviewed. we regard the media as our partners. but we do not expect uncritical coverage from the media of the bou as that would be counterproductive and would do little to enhance public confidence in monetary policy. instead, we welcome well informed comment and analysis by the media of our monetary policy, even if critical, which can enhance public understanding and contribute to public debate. before i conclude, i would like to make a brief comment on the overall state of the media in this country. when one takes a long term perspective, it is beyond doubt that that there has been great progress made by the ugandan media over the last two decades. the range of media outlets has broadened and we have a much more vibrant media than many other countries in our region. in many respects, the media has been one of the most successful sub - sectors of our economy. i hope that this progress can continue and that initiatives like this one tonight will spur journalists to greater heights. but for this to happen, journalists must jealously guard their integrity and intellectual independence so as not to act according to the whims or biased persuasions of self - interest groups or individuals, which will be to the detriment of the public good, institutions and the economy as a whole. finally let me congratulate all the winners of awards tonight. i have no doubt that you have thoroughly deserved your success. thank you for listening to me. 2 / 2 bis central bankers'speeches

and credit recovery. the latest stress tests indicate that the banking system can withstand shocks. as the current credit expansion cycle gains momentum, bou remains focused on maintaining strong supervision to ensure that banking sector loans and advances do not drastically worsen if the economic growth momentum unexpectedly slows down. although bank supervision and regulatory structures broadly follow international best practices, bou has stepped up the strengthening of commercial banks ’ financial reporting, internal controls, and governance. weaknesses in page 3 of 5 these areas were at the core of the most recent commercial bank failures. despite strong economic performance since the early 1990s, uganda ’ s financial sector remains shallow. private sector credit could play a bigger role in supporting growth that is the case at this moment. private sector credit remains low at 12 per cent of gdp. although large corporates have access to credit on more favourable terms, smaller firms in need of financing have limited options. they often do not meet financial accounting standards that would facilitate access to long - term capital. a law to allow movable assets as collateral has been passed. however, legal uncertainty over property rights and lengthy proceedings to recover collateral continue to weigh down on banks ’ credit risks. the stock market remains largely untapped with only 9 listings of domestic companies and rather limited trading in the shares of those that are listed. on a more positive note, around 85 per cent of ugandans have access to financial services, including through mobile money. the bou together with other stakeholders is implementing a five - year financial inclusion strategy so as to improve financial literacy, develop the credit infrastructure and promote formal savings, investment, and insurance while ensuring consumer protection. in 2018, access to financial services benefited from the introduction of agency banking. uganda has recently issued regulations for islamic banking and preparations are underway for the introduction of the first islamic financial products. the bou in collaboration with page 4 of 5 other stakeholders is working towards adopting the national payments system act, which will provide a legal basis for bou to supervise the mobile money sector and support modernise of the financial system. in conclusion, uganda has made impressive development gains over the last 3 decades, while maintaining macroeconomic stability. the prudent approach to fiscal and monetary policy has served the country well. the challenge is to build on this momentum so as to achieve economic take - off in the next few years. page 5 of 5