Uzbekistan’s Central Bank keeps refinancing rate unchanged
Baku, Azerbaijan. Oct. 21
By Fakhri Vakilov-Trend:
Board of Uzbekistan’s Central Bank decided to leave the refinancing rate unchanged at 16 percent per annum, Trend reports citing the Central Bank's press service.
According to the press service of the regulator, the decision of the Central Bank was based on the continued dynamics of inflation and inflation expectations and the occurrence of one-time inflationary shocks.
“Until the end of the year, due to the fading effect of one-time shocks, the growth rate of consumer prices will gradually decrease and will form near the upper limit of the forecast corridor - 15.5 percent per annum,” the press service said.
The Central Bank also proceeded from the need to use a prudent approach to further increase interest rates and ensure the financial stability of commercial banks, due to some concerns about the growth of loans in foreign currency and increased segmentation of the credit market.
“While maintaining the refinancing rate at the current level, the Central Bank will simultaneously take macroprudential supervision measures, the essence of which is a more restrained approach to lending by banks in order to eliminate imbalances in the financial market and ensure financial stability of the entire economy,” the regulator said.
The Central Bank also noted that at present, the refinancing rate is at an acceptable level for the economy when real interest rates on deposits and loans in national currency are positive.
The Central Bank refinancing rate has been unchanged since September last year, when it was increased from 14 percent to 16 percent.
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