The Board of the Central Bank of Uzbekistan decided on June 17 to keep the main policy rate at 14% per annum, citing inflation dynamics, strong domestic demand, and external economic uncertainty.

According to the regulator, annual inflation slowed to 5.5% in May, driven by the fading of a high base effect from the previous year.

“The dynamics of persistent inflation components, high domestic demand, and external economic uncertainty require maintaining tight monetary conditions,” the official statement said.

Core inflation stood at 5.7% in May. Inflation expectations among the population and businesses continue to decline. Economic activity remains robust, with growth in retail trade, services, tourism, and investment indicating sustained aggregate demand.

The increase in energy tariffs from June will have a short-term impact on inflation. Beyond the direct effect, secondary factors related to transport and production costs will materialize in subsequent quarters.

The central bank kept its inflation forecast for end-2026 at 6.5% and economic growth projection at 7–7.5%.

Real positive interest rates encourage savings by households and businesses, ensure balanced credit growth, and contain inflationary pressures.

External economic uncertainty remains high — volatility in food and energy prices, rising logistics costs create risks of imported inflation.

Source: kun.uz