Uzbekistan’s Central Bank keeps base rate unchanged

Uzbekistan Materials 21 January 2021 15:12 (UTC +04:00)

BAKU, Azerbaijan, Jan. 21

By Klavdiya Romakayeva - Trend:

During a regular meeting of the Board of the Central Bank of Uzbekistan (CBU), it was decided to leave the base rate unchanged at 14 percent, Trend reports with reference to the press service of CBU.

The last time the bank lowered the base rate by one percent to the level of 14 percent per annum in September 2020.

It was noted that then this decision was made due to the strengthening of the prerequisites for a further slowdown in the forecast inflation dynamics, the need to maintain moderately positive real interest rates in the economy, as well as to achieve a balance between the inflation target and the maintenance of economic activity in a pandemic.

In September 2020, it was also reported that CBU maintains the inflation forecast at the end of 2020 at the level of 11-12.5 percent with an increase in the probability of its formation closer to the lower border of the forecast corridor. With a steady decline in inflationary expectations and maintaining macroeconomic stability, this forecast may be revised downward.

CBU said then that together with the government, it will take all necessary measures to achieve a constant inflation target by 2023 at five percent.


Follow the author on Twitter: @romakayeva