The board of the Central Bank of Uzbekistan decided to keep the key interest rate at 13.5% per annum following its meeting on 23 January, the regulator’s press service announced.
According to the Central Bank, while overall inflation was declining in recent months, inflationary factors in the economy remain mixed. Despite the expected reduction of the impact of last year’s energy price liberalization in the coming quarters, persistently high inflation expectations require maintaining relatively tight monetary conditions.
The decision aims to bring core inflation and inflation expectations back to a stable downward trajectory, while ensuring sufficient conditions to achieve the 5% inflation target in the medium term.
Overall inflation has been on a downward trend since October, reaching 9.8% year-on-year in December. The Central Bank believes this as a sign of strengthening price stabilization. By the end of 2024, price growth for three-quarters of the goods and services in the consumer basket slowed compared to 2023.
At the same time, core inflation slightly accelerated in December, rising to 7.2%. The relatively high inflation of services and non-food products indicates the presence of inflationary factors driven not only by supply issues but also by increasing aggregate demand, the bank said.
