Uzbekistan Interest Rate1994-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Central Bank of Uzbekistan left its benchmark base rate unchanged at 14% at its September 9th 2021 meeting, amid persistent inflationary pressures. The annual inflation rate in Uzbekistan quickened to a five-month high of 11.1% in July, from 10.9% in June.

The Central Bank of Uzbekistan left its benchmark base rate unchanged at 14% at its July 29th 2021 meeting, while the interest rate corridor was widened to more or less 2 percentage points, as policymakers hoped to achieve the year end inflation target of 9%-10% and maintain economic activity balanced against a worsening pandemic. The annual inflation rate in Uzbekistan stood at 10.9% in June, unchanged from May, driven by food prices. The economy expanded 6.2% in the first semester, compared to the same period a year earlier, due low base year effects, fiscal stimulus, and loans to the economy. Meanwhile, the central bank upgraded its 2021 growth forecasts to 5.8%-6.8%, from an earlier 4.5%-5.5% estimate. On an ending note, the bank reaffirmed its commitment to monitor and eliminate inflationary risks.

The Central Bank of Uzbekistan held its benchmark base rate unchanged at 14% during its May 2021 meeting, as inflation expectations remained high despite easing slightly. The annual inflation rate in Uzbekistan edged higher to 10.9% in May, from 10.7% in April, underpinned by food prices. The bank noted that inflationary pressures remained relatively high in recent months and required the intensification of measures to curb inflation, such as keeping real interest rates positive. Policymakers said that interest rates in the money market had been declining in the previous two months against a background of rising liquidity in the banking system, adding that in May, the average weighted interest rates fell below the lower limit of the Central Bank’s target range. The Board concluded by reaffirming that the current level of the Central Bank’s base rate is considered sufficient to reach the inflation target for 2021.

The Central Bank of Uzbekistan left its benchmark refinancing rate steady at 14% during its April 2021 meeting, as inflation expectations remain high. The bank noted that headline inflation slowed to 10.9% in March from 11.4% in February but said the persistence of inflationary risks for longer-than-expected, under the influence of internal and external factors, required the current monetary policy stance. According to the State Statistics Committee, the Uzbekistani economy advanced 3% in real terms during the first quarter of 2021, compared with the same period a year earlier. The central bank added that the country’s major trade partners also showed signs of recovery. Looking ahead, policymakers expect the economy to grow in the range of 4.5-5.5% in 2021, and may consider a cut in interest rates should inflation stay within 9-10% by the end of the year.