Central Bank of Uzbekistan again holds policy rate at 14%

TASHKENT. April 25 (Interfax) - The Central Bank of Uzbekistan on Thursday decided to keep its key policy rate unchanged at 14% per annum, the regulator said in a press release.

It said overall inflation had slowed, particularly for food, since the start of the year, and was down to 8% in March, however service charges had risen and inflation expectations among businesses and households remained higher than actual and forecast inflation, now 9-11% for the year in the baseline scenario.

GDP growth quickened to 6.2% in Q1 and could rise 5.2%-5.7% in the year, according to the revised forecasts.

"The Central Bank, while pursuing a moderately tight monetary policy aimed at achieving a 5% inflation target, will pay particular attention to the balance of supply and demand in the economy, inflation expectations and the speed of structural reforms," the regulator said.

The Central Bank decided in March 2022 to hike the policy rate from 14% to 17% per annum. The rate was lowered 1 pp to 16% per annum in June and another 1 pp to 15% in July and held at that level until March last year when it was lowered to 14% amid positive economic tendencies.

The next policy rate meeting is scheduled for June 13.