BAKU, Azerbaijan, July 23
By Ilkin Seyfaddini - Trend:
The Board of the Central Bank of Uzbekistan decided to leave the interest rate unchanged at 15 percent per annum, Trend reports citing the Bank.
"The decision was adopted in order to maintain the current rate of monetary policy in the conditions of simultaneous presence of inflationary and disinflationary risks in the economy and is aimed at creating conditions for maintaining positive real interest rates," the message said.
According to the bank, the increase in budget expenditures and the fiscal stimulus were the main factors that supported activity and economic processes, considering the COVID-19 pandemic.
"Interest rates contributed to positive economic growth in the first half of the year, despite the quarantine period. The slowdown in price growth in the first half of 2020 was more restrained, with a slight upward deviation from the forecast inflation trajectory," the message said.
However, the Central Bank reported that they allow further cuts in the interest rate, but it depends on what happens to the inflation forecast. Now, the regulator believes that it will make 11-12.5 percent by the end of the year.
The last time the interest rate was changed in mid-April - then it fell from 16 percent to 15 percent. This was the first rate reduction since 2015.
---
Follow author on Twitter: @seyfaddini