The Central Bank of Uzbekistan kept the key rate at 14%

The rate remained at 14%

On November 4, the Central Bank of Uzbekistan announced at a press conference that the key rate would remain at 14% per annum. Deputy Chairman of the regulator Nodirbek Ochilov explained that, despite the decline in inflation, sufficient grounds for lowering the rate have not yet emerged, reports Kun.uz.

Why the rate was neither lowered nor raised

According to Ochilov, in the bank's calculations, the initial impact of tariff increases on inflation is expected to be short-term and relatively low, so the question of raising the rate was not put on the agenda. At the same time, the impact of tariff changes at subsequent stages was also taken into account: the bank's board considered it appropriate to continue a tight monetary policy in order to prevent secondary effects and contain inflationary pressure.

A cut to 13.5% was discussed

The deputy chairman noted that the option of lowering the rate to 13.5% was also considered. Inflation expectations, core inflation, and positive trends in the foreign exchange market create certain conditions for a reduction. «If these grounds strengthen further and we gain more confidence, there is a possibility that the question of lowering the rate will be put on the agenda of the next meeting,» Kun.uz quotes Ochilov as saying. According to current forecasts, there are no factors requiring a rate increase: the regulator considers the current 14% sufficient to contain inflationary risks.