The Board of the Uzbek Central Bank decided to keep the interest rate at 14% per annum, with relatively high inflation rates are expected in the Uzbek economy in the second year-half.
Increase in inflationary pressure may be accompanied with higher investment and consumer demand due to the expansion of lending under the targeted programs and rise in pay, as well as with the liberalization of once regulated prices.
Inflation. In the first year-half, the increase in the consumer price index (CPI) was at 6.2% compared to 7.2% in the last year. The monthly trend of the CPI indicates a gradual slowdown in price growth from 2.7% in January to -0.4% in June.
Monetary policy. Interest rates of the money market fluctuated within 12.7-13.1%, reflecting the change in the availability of liquidity in the banking system.
"The national currency strengthened by 3.1%. in the backdrop of an increase in the supply of foreign currency in Q2," the Central Bank notes.
Economic and investment activity. The volume of GDP in the first year-half, as previously reported by the Statistics Committee grew by 4.9%, with the volume of capital investments increased by 13.4%.
The Central Bank predicts the expansion of state programs aimed at the development of entrepreneurship, sectors and provinces in the second half of the year, which will facilitate the economic growth.
