FX.co ★ Uzbekistan Holds Key Rate at 14%

The Central Bank of Uzbekistan maintained its key interest rate at 14% during its April 2025 meeting, opting for a cautious monetary policy in response to ongoing demand growth and high price pressures. In March, headline inflation reached 10.3%, and core inflation stood at 8.1%, influenced by both demand and supply-side factors. Despite improvements in energy supplies and a stable currency, inflation expectations remain high, though they have begun to ease slightly. The policymakers emphasized that maintaining the current monetary stance is essential for steering inflation back to a sustainable downward trajectory, aiming for the medium-term target of 5%. By the end of the year, inflation is anticipated to be near the upper limit of the targeted 7–8% range. Concurrently, economic growth accelerated to 6.8% in the first quarter, fueled by strong consumption, investment, and remittances. The Bank has indicated its commitment to closely monitoring the secondary impacts of energy price liberalization and is prepared to adjust monetary conditions should inflation risks escalate.