Uzbekistan Central Bank Sets Condition for Reducing Key Rate
Nodirbek Achilov, Deputy Chairman of the Central Bank, expects inflationary pressure to ease after the completion of tariff adjustments, which will expand opportunities for monetary policy easing.
On November 4 in Uzbekistan, Nodirbek Achilov, Deputy Chairman of the Central Bank, stated that after the completion of tariff increases, the impact of supply on inflation will decrease.
The regulator attributes such factors to structural components dependent on imports, energy costs, and transportation expenses. Achilov noted that the price increase for propane and other planned changes had a one-time effect, which will eventually cease to be factored into calculations.
The Central Bank’s inflation forecast for the end of 2027 remains unchanged at 5%. The key rate also remains unchanged at 14%. The regulator maintains it to limit the secondary effects of tariff adjustments and prevent their impact on inflation expectations and persistent inflation components.
After the completion of tariff processes, according to Achilov’s assessment, price dynamics will be primarily influenced by external shocks and demand. This will increase the scope for subsequent rate reductions.
