An Evaluation of the Effects of Central Bank Policies on Bond Market Performance in Uganda
| dc.contributor.author | Beatrice Kirabo Nakibuuka | |
| dc.date.accessioned | 2025-11-14T05:36:59Z | |
| dc.date.available | 2025-11-14T05:36:59Z | |
| dc.date.issued | 2025-10-01 | |
| dc.description | UNDERGRADUATE RESEARCH | |
| dc.description.abstract | This study assesses how central bank policies affect Uganda's bond market performance, with a particular emphasis on the ways that important monetary policy tools affect investor participation, trading activity, and liquidity. It specifically looks at reserve requirement rules, open market operations, and the central bank rate (CBR). Structured questionnaires were used to gather information from 43 players in the financial market, including traders, analysts, investors, and regulators. Regression analysis and descriptive statistics were used to investigate the connections between bond market performance and central bank policy. The results show that the CBR is a key factor in determining bond rates and liquidity: 72.1% of respondents said that a higher CBR decreases market liquidity, while 67.4% of respondents agreed that changes in the CBR had a direct impact on bond yields. Increases in the CBR result in higher borrowing costs and less trading activity, according to regression studies that indicated a strong negative association (coefficient = -0.542, R2 = 0.46, p < 0.001). Of those surveyed, 72.1% concurred that OMOs increase trade volumes, while 69.8% pointed out that they increase liquidity. A substantial positive correlation was shown by regression analysis (coefficient = 0.476, R2 = 0.42, p < 0.001), indicating that OMOs successfully maintain liquidity and promote primary and secondary market activity. Regarding reserve requirements, 72.1% of respondents said that they deter small investors, while 76.7% said that they decrease investor liquidity. Investor engagement was negatively and significantly impacted, according to regression analysis (coefficient = -0.391, R2 = 0.37, p = 0.004). Overall, the analysis demonstrates that central bank policies have a major impact on yields, liquidity, and investor activity in Uganda's bond market. Policymakers, regulators, and market players may use this information to guide their actions and ensure vibrant, inclusive, and sustainable financial markets. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/3135 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | An Evaluation of the Effects of Central Bank Policies on Bond Market Performance in Uganda | |
| dc.type | Thesis |