The Board of Directors of the Central Bank in its regular meeting kept the interest rate unchanged at 14% per annum, the Bank’s press service said.
Reportedly, the decision is aimed at containing inflationary pressure and forming a sustainable downward trend in inflation, bringing it closer to the 5% target level in the medium term.
Annual inflation in March reached 10.3%, core inflation accelerated to 8.1%. This, along with supply factors, also reflects the increasing influence of demand factors.
Despite the decrease in inflation expectations among the public and businesses in March due to improved fuel and energy supplies, as well as the relative stability of the exchange rate, they still remain above the current inflation rate.
The exhaustion of the primary effect of energy price liberalization, carried out in 2024, will occur by the end of the second quarter and will have a decreasing effect on inflation. In addition, the deterioration of international trade conditions increases the risk of growth in global consumer prices, an increase in production costs and an increase in external inflationary pressure.
