Central Bank of Uzbekistan retained main rate at level of 14% per annum

The Central Bank of Uzbekistan retained the main rate of 14 percent.

“At a meeting of the Board of the Central Bank on January 25, 2024, the main rate was preserved unchanged, at the level of 14 percent per annum,” the press service of the Central Bank said in a statement of the press service

The regulator noted that the generated monetary conditions are aimed at ensuring the trajectory of sustainable inflation reduction to the level of 5 percent of the target.

“General inflation in recent months has persisted at the level of 8.8 percent. Despite the decrease in inflation in the group of consumer goods, the inflation of services in the last quarter has slightly accelerated. In turn, this shows that there is a probability of increasing increased pressure from the side demand for inflation, ”says it.

In general, the regulator explains the emergence and preservation of inflationary processes in the economy, explains the inability of some of the proposal components to fully adapt to high demand conditions.

“An important role in accelerating economic growth to 6 percent in 2023 played high growth rates in fixed assets. Positive dynamics of loans in the economy, fiscal stimuli and money transfers also supported the dynamics of economic growth,” the report said. P>

According to the Central Bank, it is expected that this year global inflation will continue to slow down under the influence of strict financial conditions, balancing labor markets and a decreasing dynamics of raw materials prices in the world economy.

The Central Bank also noted that according to the updated forecasts of the main scenario, the total inflation in 2024 is expected at the level of 8-9 percent, the basic inflation is about 7-8 percent.