Baku, Azerbaijan, Dec. 29
By Nigar Guliyeva – Trend:
In 2018, Uzbekistan expects an increase in the money supply by 12-15 percent, reads a statement of the Central Bank of Uzbekistan on the main directions of monetary policy for 2018, published on Dec. 29.
"Given the forecast of inflation and the demand for money within the envisaged rates of economic growth in 2018, the money supply is projected to increase 12-15 percent next year. Furthermore, a corresponding increase is expected in the balance of the economy lending," reads the statement.
The Central Bank notes that the projected execution of the state budget with a surplus will prevent a sharp increase in the money supply.
"Maintaining a positive balance of current accounts of the country's balance of payments (at a rate of 2.5-3 percent of GDP) as well as increasing foreign investment and international credit lines may lead to a faster growth in the money supply," reads the statement.
The Central Bank notes that, in general, monetary policy in 2018 will be conducted under relatively high inflationary expectations.
Based on this, in the coming year, the monetary policy will focus on creating the necessary conditions for ensuring price stability by minimizing the influence of monetary factors on inflation.
The Central Bank notes that the rate of inflation in 2018, as in the current year, will be high - at 11.5-13.5 percent on an annual basis. In 2018, Uzbekistan's economic growth rate will be 5.5-6 percent.