Uzbekistan, Tashkent, Nov.1 / Trend D. Azizov/
The Uzbek Central Bank will keep its refinancing rate at 14 percent annually in November, the bank stated in a press release this morning.
The bank stressed that the rate will remain unchanged based on its chief monetary policy for 2010, as well as the actual and expected inflation rate.
The refinancing rate remained at 14 percent per annum in 2008, 2009 and from January to October this year, in a move to reduce inflation and devaluation pressure.
According to the bank, "a tight monetary policy was pursued to prevent the influence of monetary factors on inflation during the first nine months of 2010." In particular, the bank kept its refinancing rate unchanged at 14 percent per annum, which "ensured the stability of interest rates in the money market and the inflation rate below the forecast figure."
According to official statistics, the inflation rate last year hit 7.4 percent, with industrial production increasing 9 percent, agricultural products rising by 5.7 percent, and total investments in the economy jumping by 24.8 percent.
Uzbekistan plans to ensure GDP growth at 8.3 percent this year, industrial production at 8.3 percent, and agricultural production at 5 percent. Inflation will remain at 7-9 percent.
The European Bank of Reconstruction and Development (EBRD) predicted Uzbekistan's economic growth at 8.2 percent this year. The EBRD raised its economic growth forecast for Uzbekistan in 2011.
Earlier reports stated that the Asian Development Bank (ADB) confirmed the April forecast for Uzbekistan's GDP growth rate at 8.5 percent for 2010 in September and at 9 percent for next year.
In early October, the International Monetary Fund confirmed its April forecast for the country's GDP growth at 8 percent for this year and at 7 percent in 2011.
According to the World Bank forecasts, Uzbekistan's economic growth will reach 6.5 percent in 2010 and 2011.
In late September, the ADB confirmed the April forecast inflation ratio at 9.3 percent and 9 percent in 2010 and 2011, respectively. According to the IMF, inflation will increase to 10.6 percent in Uzbekistan this year compared to the April forecast of 9.2 percent, eventually rising to 11.4 percent in 2011.
The total assets of Uzbek banks increased by 30.2 percent to 15.703 trillion soum compared to the 2008 figure, while the total loan portfolio rose by 34.3 percent to 8.557 trillion soum, and total capital jumping 38.7 percent to 3 trillion 10.4 billion soum.
The official exchange rate is 1626.30 soum to $1.