23:03 / 10.09.2020

Central Bank of Uzbekistan reduces refinancing rate by 1%, sets it at 14% per annum

The Central Bank of Uzbekistan held a press conference on the results of the next Board meeting. The chairman of the Central Bank Mamarizo Nurmuratov said that the refinancing rate has been reduced by 1 percentage point and set at 14% per annum.

Mamarizo Nurmuratov

According to Kun.uz correspondent, the reason for reducing the refinancing rate is the slowdown in inflation, the strengthening of confidence in achieving the forecast results by the end of the year, the need to maintain positive real interest rates in the economy, as well as the balance between reducing the inflation and supporting the economic activity.

At the same time, the relatively small number of factors that sharply increase inflation in the forecast period will allow easing monetary conditions without creating inflationary risks.

At the end of the year, the inflation forecast remained unchanged at 11-12.5%, increasing the likelihood of inflation close to the lower limit of the forecast corridor. Also, in the context of a stable decline in inflation expectations in the economy and the maintenance of macroeconomic stability, the inflation forecast may be further reduced.

It was noted that the Central Bank, together with the government, will take all necessary measures to achieve a stable target of 5% inflation by 2023.

Related News