Central Bank of Uzbekistan may switch to inflation targeting by year’s end
Baku, Azerbaijan, Sept. 27
By Fakhri Vakilov - Trend:
The Central Bank of Uzbekistan plans to switch to inflation targeting in the 4th quarter of 2019, the benchmark will be 10 percent by 2021, 5 percent by 2023, as follows from the draft decree of President of Uzbekistan Shavkat Mirziyoyev, promulgated on September 27, Trend reports citing the Uzbek media.
Inflation targeting is a set of monetary measures that government bodies take to control inflation in a country. Targeting is introduced “in order to curb inflationary processes, to combine the actions of all government bodies to create market conditions for the formation of stable low prices in the economy,” the draft decree notes.
In accordance with the decree, to introduce the targeting regime by the end of the year, it is planned to introduce the basic rate and the interest rate band, and to introduce new credit operations by December 1: overnight deposits, overnight loans, bonds, Central Bank's two-week credit auctions.
In July, the Central Bank maintained the basic inflation forecast for 2019 at 13.5-15.5 percent, as well as the refinancing rate at 16 percent against the backdrop of continuing inflation risks, the need to strengthen the dynamics of growth in the share and volumes of long-term savings resources of banks.
Public discussion of the project will last until October 12.
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