The Central Bank of the Republic of Uzbekistan keeps the previous rate
Economy
In a decision made on 14 December 2023, the Central Bank of the Republic of Uzbekistan decided to keep the main rate at 14% per annum, straining monetary conditions in the country. Experts emphasise that this decision is due to uncertainties in the economy, despite some reduction in inflation figures.
The Board of the Central Bank of the Republic of Uzbekistan, at its meeting on 14 December 2023, made a strategic decision to keep the main rate at 14% per annum, stressing the importance of maintaining relatively tight monetary conditions in the country.
Despite some slowdown of inflationary processes in the economy, there are still some uncertainties about the duration of this trend. In the context of strong aggregate demand and the objective of reducing inflation to 5 per cent target in 2025, the Central Bank leaves monetary conditions relatively tight.
In October-November this year, the inflation rate declined to 8.8 per cent due to various factors, including the impact of last year's high base and the impact of tight monetary conditions.
Forecasts indicate an expected inflation rate in the range of 8-9% in 2024. There is a risk of external pro-inflationary factors due to constraints in the international arena, which emphasises the need to maintain tight monetary policies.
Economic activity in Uzbekistan is supported by strong demand and investment. However, the persistence of inflation risks emphasises the importance of long-term price stability in the country. The Central Bank Board emphasised that decisions on the key rate will be made based on incoming data and inflation forecasts.
The next key rate review meeting is scheduled for 25 January 2024.
Despite some slowdown of inflationary processes in the economy, there are still some uncertainties about the duration of this trend. In the context of strong aggregate demand and the objective of reducing inflation to 5 per cent target in 2025, the Central Bank leaves monetary conditions relatively tight.
In October-November this year, the inflation rate declined to 8.8 per cent due to various factors, including the impact of last year's high base and the impact of tight monetary conditions.
Forecasts indicate an expected inflation rate in the range of 8-9% in 2024. There is a risk of external pro-inflationary factors due to constraints in the international arena, which emphasises the need to maintain tight monetary policies.
Economic activity in Uzbekistan is supported by strong demand and investment. However, the persistence of inflation risks emphasises the importance of long-term price stability in the country. The Central Bank Board emphasised that decisions on the key rate will be made based on incoming data and inflation forecasts.
The next key rate review meeting is scheduled for 25 January 2024.
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