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

Uzbekistan posts first-half GDP growth of 6.4%

Uzbekistan's economy grew at a rate of 6.4% in the first half, according to offical statistics. The GDP growth was discussed in a meeting focused on economic sectors led by ... more

Uzbekistan, Russia to develop mutual trade, create joint industrial parks

Uzbekistan and Russia have announced plans to further develop mutual trade and create joint industrial parks, according to the Russian trade mission in Uzbekistan. Russian Industry and Trade ... more

Uzbek officials visit Uzbek-Iranian joint venture for $274mn petrochemical project in Bukhara district

Officials from the Chamber of Commerce and Industry of Uzbekistan (CCI) and the Bukhara regional administration recently visited the Petrochem Sepehr joint venture.  The venture, ... more

Follow Us On

Most Read

  1. Dubai heatwave: Temperature feels like 62°C as scientists explain extreme conditions
    9 days ago
  2. Six out of nine “planetary boundaries” have been crossed and a tenth has appeared
    2 days ago
  3. How energy intensive are data centers?
    2 days ago
  4. Earth records hottest year since records began
    2 days ago
  5. Plants absorbing less carbon dioxide in 2023, accelerating global warming
    1 day ago
  1. Dubai heatwave: Temperature feels like 62°C as scientists explain extreme conditions
    9 days ago
  2. Russia overtakes Japan to become the fourth largest economy in the world in PPP terms
    1 month ago
  3. Global access to energy starts to fall for the first time in a decade, says IEA
    25 days ago
  4. LONG READ: The war in Ukraine is inching towards a ceasefire as pressures mount
    19 days ago
  5. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    3 months ago

Reports

Dismiss