Central Bank Raises Key Interest Rate to 14% Amid Rising Inflation
Economy
The Board of the Central Bank of Uzbekistan has decided to tighten monetary policy by increasing the key interest rate by 0.5 percentage points — from 13.5% to 14% annually. The measure aims to curb inflationary pressures and ensure price stability in the economy.
According to the Central Bank, inflation rose at the beginning of 2025, reaching 10.1% year-on-year in February. This was driven by price increases for fuel, utility services, transport, education, and healthcare. Inflation expectations have also grown, with the public expecting 15.3% and businesses 13.8%.
The regulator noted that rising consumer demand, an increase in remittances, and higher household lending contributed to growth in retail trade and paid services, fueling inflation in the service sector.
Tightening monetary conditions is expected to balance supply and demand, reduce inflation to 7–8% by the end of 2025, and achieve the 5% inflation target in the medium term.
The regulator noted that rising consumer demand, an increase in remittances, and higher household lending contributed to growth in retail trade and paid services, fueling inflation in the service sector.
Tightening monetary conditions is expected to balance supply and demand, reduce inflation to 7–8% by the end of 2025, and achieve the 5% inflation target in the medium term.
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