The Central Bank at its BOD meeting today decided to keep the interest rate at 13.5% with an aim to curb inflation and achieve its target at 5% in the medium term, the press service of the Central Bank said in a report.
Reportedly, the economy continues to experience inflationary pressure under the influence of high consumer and investment activity and changes in the supply of certain types of goods and services.
To ensure a sustainable cut in inflation and achieve the target figure of 5% in the medium term, it is necessary to maintain relatively strict conditions, which implies maintaining the key rate at the current high level, the regulator said.
In September, the annual value of overall inflation was at 10.5%, unchanged in the last quarter. The dynamics of core inflation switched to an increasing trend under the influence of high consumer demand, the energy liberalization prices (as of April 2025) to service prices, and the growth of prices for certain types of food products, and formed in September at the level of 7.1% in annual terms.
High growth rates of money transfers to Uzbekistan to the previous year contribute to an increase in the income of households. The growth of average wages and real incomes in the economy support consumer activity. In particular, high growth rates in the services and retail sectors indicate the formation of strong consumer demand.
Based on the emerging trends in economic growth, in 2024, the real GDP growth rate is projected at 6-6.5%.
High real interest rates in the banking system continue to increase the savings activity of the population. Moderate lending growth rates and high deposit growth rates will help balance aggregate demand and reduce the impact of monetary factors on inflation.
At the same time, in the coming quarters, pro-inflationary risks (risks of accelerating inflation) may arise, related to energy supplies and short-term changes in their prices, interruptions in the supply of certain goods, and the preservation of relatively high prices for services.
“Under any conditions, the Central Bank will continue to implement monetary policy aimed at achieving the inflation target of 5%, paying special attention to the balance of supply and demand in the economy, inflation expectations, and the pace of implementation of structural reforms,” the statement says.
The next meeting of the Central Bank to consider the rate is scheduled for December 12.
