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.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Iran pushes farm-trade pivot to EEU as US blockade squeezes Gulf ports
The Islamic Republic of Iran wants to widen agricultural trade and joint investment with Eurasian Economic Union (EEU) states, a deputy agriculture minister told the bloc's farm-policy council ... more
Eurasian Development Bank receives first-time Ag credit rating from CCXAP
The Eurasian Development Bank (EDB) has received a first-time long-term credit rating of 'Ag' from Hong Kong-based China Chengxin Credit Ratings Company (CCXAP), with a stable ... more
Uzbekistan's Mirziyoyev heads to Minsk as Lukashenko widens his diplomatic circle
Shavkat Mirziyoyev, Uzbekistan's president, began a two-day official visit to Belarus on July 7 at the invitation of Alexander Lukashenko, in the latest sign of Minsk's push to broaden its ... more