Central Bank of Uzbekistan again holds policy rate at 14%

TASHKENT. Sept 16 (Interfax) - The Central Bank of Uzbekistan's board decided at a meeting on Wednesday to keep the key policy rate at 14% per annum, the regulator said in a press release.

"Although inflation continues to trend downward and the economy is showing certain signs of more balanced dynamics, the persistence of certain upside risks to inflation calls for maintaining current tight monetary conditions," the regulator said.

In August, headline inflation continued decelerating and amounted to 6.2%, it said.

"At the same time, an increase in the share of goods and services with year-on-year price increases above 5% indicates persistent price pressures in the economy. Inflation expectations of households and businesses also continued to decline. However, inflation expectations are declining more slowly than headline inflation, reflecting the continued influence of inflationary inertia on price-setting processes," it said.

Positive trends in retail trade, the services sector and investment indicate strong consumer and investment demand. "At the same time, in recent months signs of stabilization have begun to emerge in some components of aggregate demand. In particular, under the impact of current tight monetary conditions, the growth rate of credit to the economy is gradually moving toward more moderate levels. Positive real interest rates are supporting households' propensity to save," the Central Bank said.

The Central Bank is due to hold its next key rate meeting on October 28.

The rate has been 14% since March 24, 2025, when it was raised from 13.5%.