FX.co ★ Uzbekistan Holds Key Rate at 14%

The Central Bank of Uzbekistan decided to maintain its key interest rate at 14% in September 2025, with the objective of curbing inflation and maintaining medium-term price stability. As of August, the annual inflation rate was recorded at 8.8%, a slight decrease from July’s rate of 8.9%. Meanwhile, core inflation has decreased to 7.6%. According to a statement by the central bank, strong consumer demand combined with rising energy costs continue to drive an increase in services inflation. Although inflation expectations among both households and businesses have eased due to seasonal influences and a stable exchange rate, they remain above the headline inflation rate. Economic growth was a robust 7.2% in the first half of 2025, driven by expansions in the services, industrial, construction, and agricultural sectors, supported by remittances, lending, fiscal spending, and investments. However, external risks linger, with global disinflation losing pace, rising food prices, and inflation rates in trading partner countries remaining above targets, increasing the risk of imported inflation. The bank anticipates an inflation rate of 8.7% by the end of the year and has indicated a willingness to tighten monetary policy if necessary.