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

EBRD backs OTP Leasing to boost SME financing in Ukraine

The European Bank for Reconstruction and Development (EBRD) has stepped in to bolster financing for small and medium-sized enterprises (SMEs) in Ukraine, providing a guarantee to OTP Leasing to the ... more

Mirziyoyev commends $74bn of foreign investment and IFI inflows as third Tashkent International Investment Forum kicks off

The foreign investment inflow into Uzbekistan has topped $60bn in recent years, President Shavkat Mirziyoyev noted as the third Tashkent International Investment Forum (TIIF-2024) got under way. ... more

Agri Europe Cyprus led by Serbian businessman plans offer to acquire additional shares in Addiko Bank in May

Agri Europe Cyprus, a holding owned by Serbian businessman Miodrag Kostic, is preparing to announce an offer to acquire additional shares of Austria’s Addiko Bank AG in mid-May, ... more

Follow Us On

Most Read

  1. Shocking trial of ex-minister has shifted domestic violence attitudes in Kazakhstan, says brother
    2 days ago
  2. Cheap Russian drones overwhelm US-made Abrams tanks, taken out of action
    8 days ago
  3. The models are wrong, climate change is accelerating faster than predicted
    9 days ago
  4. Russia already treating Bosnia’s Republika Srpska as an independent state
    9 days ago
  5. Saddam-era Iraqi howitzers get delivered to Ukraine
    7 days ago
  1. Albanians campaign on social media to keep bus bridge created in freak accident
    2 years ago
  2. Saudi Arabia to scale back plans for Neom city
    24 days ago
  3. Iran vs Israel: Who is better equipped for war?
    21 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    6 months ago
  5. Leading emerging markets move rapidly up World Bank’s PPP GDP and FDI confidence rankings
    25 days ago

Reports

Dismiss