The BOD of the Central Bank at its Jan. 25 meeting, the interest rate was kept unchanged at 14% per annum, the press service of the Central Bank said.

“Taking into account expectations emerging under the influence of high trend on demand side, the interest rate was left unchanged. According to forecasts, inflation is expected to be 8-9% by the end of the year,” the report says.

The monetary conditions being formed are aimed at ensuring a trajectory of sustainable reduction in inflation to the 5% target level.

Overall inflation has remained at 8.8% in recent months. Despite the decline in inflation in the group of goods in the consumer basket, inflation in services slightly accelerated in the last quarter, the Central Bank added. “In turn, this shows that there is a possibility of increasing upward pressure on the demand side for inflation,” analysts say.

The emergence and persistence of inflationary processes in the economy is explained by the inability of some components of supply to fully adapt to conditions of high demand, the Central Bank explained.

Meanwhile, according to recent surveys, perceived inflation and inflation expectations remain high.

High growth rates of investment in fixed assets played an important role in accelerating economic growth to 6% in 2023. The positive dynamics of loans to the economy, fiscal incentives and remittances also supported the dynamics of economic growth, the Central Bank emphasized.

The regulator expects that global inflation will continue to slow in 2024, driven by tight financial conditions, balancing labor markets and declining commodity price dynamics in the global economy.