Uzbekistan’s key rate held at 14% as central bank points to fears over reacceleration of inflation

By bne IntelliNews April 25, 2024

Uzbekistan's central bank on April 25 kept its benchmark interest rate on hold at 14%, pointing to risks that inflation could once more accelerate.

Planned hikes of state-regulated prices for certain goods and services, together with the introduction of value-added tax on some goods, could add to price growth, it said.

Uzbekistan’s annual inflation rate moved down to 7.98% in March from 8.35% in February, with lower food prices a key factor.

However, monetary conditions were forming in a relatively tight phase in comparison to the upper boundary of the updated forecast on the inflation corridor, the Central Bank of Uzbekistan (CBU) added.

The CBU, which targets inflation of 5%, has revised its 2024 annual inflation expectation to between 9% and 11% from 8% to 9%.

The inflation expectations of the population and entrepreneurs remained above the CBU’s current and projected inflation rates, the regulator noted.

Last week, the International Monetary Fund (IMF) said that following inflation in Uzbekistan of 10% last year, it was expecting 11.6% this year and 9.7% in 2025.

The CBU has stuck with the current key rate of 14% on nine consecutive occasions.

Its next rate-setting meeting is scheduled for June 13.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

World Bank must wake up to Rogun mega dam “nightmare” in Tajikistan, say activists ahead of financing vote

The World Bank has to realise that the Rogun mega project “dream of the biggest dam [in the world] will turn into a nightmare for the people and nature in Tajikistan and beyond” and that it ... more

EBRD provides $10mn loan to TBC Bank Uzbekistan to empower micro, youth-led and women-owned businesses

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $10mn (€9.1mn) to TBC Bank Uzbekistan (TBC UZ) to ... more

Uzbekistan aims for reform-driven GDP outcome of $200bn by 2030

Uzbekistan's government officials are talking about a new phase of governance, marked by transformative economic and social reforms. GDP has doubled over the past five years to surpass ... more

Follow Us On

Most Read

  1. Turkey, Syria tandem could mean piped Qatari gas for Europe and a supercharged Middle East clean energy transition
    5 days ago
  2. IEA: Access to energy improving worldwide, driven by renewables
    7 days ago
  3. Russia’s arms exports slump, Kremlin preparing for possible war with Nato
    6 days ago
  4. FDI in Emerging Europe hit by geopolitical uncertainty and German slowdown
    8 days ago
  5. Romanian liberals orchestrated Georgescu campaign funding, investigation reveals
    4 days ago
  1. UPDATED: Syria's former president Assad arrives in Moscow
    19 days ago
  2. Qatar-Turkey-Europe gas pipeline ambition could be back on following fall of Assad
    16 days ago
  3. EBRD warns of risks for emerging markets pursuing industrial policies
    1 month ago
  4. RAGOZIN: Does the exiled Russian opposition have a future?
    15 days ago
  5. Syrian opposition bans forced wearing of hijab
    17 days ago

Reports

Dismiss