In Uzbekistan, the basic rate was left unchanged at the level of 14 percent

At the moment, a meeting of the management of the Central Bank of Uzbekistan is being held. It decided to leave the basic rate unchanged at the annual level of 14 percent. 

It was reported that annual inflation rates in the country continued to fall in March and April, respectively, at 11.7 and 11 percent respectively. Seasonal factors and the high base effect of the previous year were also instrumental in this decline.   

Base inflation, which represents long-term and stable factors of inflation, also experienced significant downward dynamics in March, slowing to 12.9 percent per annum (13.8 percent as of December 2022). In this case, the contribution of base inflation to total inflation was less than 10 percent band for the first time since October last year.

The forecast range of the inflation rate at the end of the year is left unchanged at the level of 8.5-9.5 percent. The dynamics of inflationary expectations, relatively strict monetary conditions in the money market, the stabilization of the situation on the offer of basic products, increase confidence in the formation of inflation between this forecast corridor.

"The central bank will continue to assess the impact of monetary conditions on gross demand, price levels and inflationary expectations. In this case, the decisions being made will be aimed at ensuring that inflation is formed within the forecast corridor,” the message said.

The central bank had already set the basic rate at 14% per annum in March, reducing it by 1%. 

In early 2018, the annual rate was approved at 14 percent. In 2019, the rate rose to 16%. As of March 2020, the base rate was still fixed at 16 percent. By the decision of the management of the Central bank of April 14, 2020, the basic rate was reduced to 1% and set at an annual level of 15%.

In June, however, there were reports that the central bank would lower the basic rate, but on June 11, the basic rate was decided and it was left unchanged at 15 percent. On March 17, 2022, at a meeting of the Central Bank, a decision to increase the basic rate was made to 17 percent, and a year later, on June 9, 2022, the central bank had lowered the basic rate to 1 percent.