Uzbekistan Interest Rate

The Central Bank of Uzbekistan kept its key interest rate steady at 13.5% during its September 2024 meeting. This decision aims to reduce inflation to the 5% target over the projected period. The stability of current monetary and credit conditions is necessary due to strong demand in the economy and rising prices in certain food products and energy resources. Inflation remained steady over the past three months, standing at 10.5% year-on-year in August. Additionally, inflation expectations rose to 12-13% in August, up from 11-12% in July, driven by anticipated increases in public sector pensions, wages, and fuel prices. Looking ahead, robust investment and consumer activity are expected to continue fueling demand. However, high levels of savings and the attractiveness of national currency deposits will help balance demand and support a gradual decline in inflation.