The key facts

  • The Central Bank maintains the goal of reducing inflation to 5% in the second half of or by the end of 2027
  • A revision of the deadline to 2030 is not envisaged in the main directions of monetary policy, but the issue may be clarified at future meetings
  • The reduction of the budget deficit and this year's surplus, according to the deputy head of the Central Bank, positively affect inflation

The deadline for reaching the target remains unchanged

The Central Bank of Uzbekistan does not yet plan to revise the deadline for reducing inflation to the target level of 5%. This was stated at a press conference on November 4 by deputy chairman of the regulator Nodirbek Achilov, Spot.uz reports. The current goal is to reach the indicator in the second half of 2027 or by the end of that year.

The question of moving it to 2030 was raised, but no decision has been made

At the event, a Spot correspondent asked whether it would be possible to move the deadline for reaching the target to 2030. Achilov replied that a revision of the target horizon is not envisaged in the main directions of monetary policy approved by the Central Bank's board. «Under current conditions, a revision of the target horizon is not envisaged,» the outlet quotes him as saying. At the same time, the deputy head of the Central Bank admitted that the issue could be clarified at further meetings, taking into account the economic trends that will take shape during this year.

The role of budget policy and prospects for easing

Achilov also emphasized the importance of budgetary and fiscal policy for curbing inflation: the reduction of the budget deficit in recent years and the surplus formed in the current year, in his words, have a positive effect on price dynamics. Stabilizing budget expenditures limits additional pressure on prices and reduces the need to tighten monetary policy, and in the future this may expand the possibilities for easing current monetary conditions. The deputy head of the regulator added that measures implemented jointly with the government will also play an important role.