Uzbekistan Interest Rate

The Central Bank of Uzbekistan raised its key interest rate by 50bps to 14% in its March 2025 meeting to curb inflationary pressures amid persistent demand growth and rising inflation expectations. Headline inflation rose to 10.1% in February, driven by higher fuel, utility, transport, education, and medical service costs. Inflation expectations remained elevated at 15.3% for consumers and 13.8% for businesses. Policymakers attributed rising service prices to strong aggregate demand, fueled by remittances and credit expansion. The central bank expects tighter monetary conditions to slow inflationary pressures in the coming quarters, with inflation projected to ease to 7-8% by year-end. It reaffirmed its 5% medium-term inflation target and signaled readiness for further tightening if inflation risks intensify.