Disinflation slows, external risks remain – Central Bank Chairman on keeping key rate unchanged 

The Chairman of the Central Bank, Timur Ishmetov, said the downward trend in inflation remains intact but has lost momentum, while prices of key food products continue to rise faster than overall inflation.

Speaking at a press conference on April 29, Ishmetov noted that the decision reflected the need to maintain a tight monetary stance despite improving headline indicators.

“Both headline and core inflation continue to decline, which is a positive development. At the same time, the pace of disinflation has slowed, and for some products, prices have not decreased. In particular, price growth for essential food items remains above the overall inflation rate. For this reason, we decided to maintain a tight monetary policy stance,” he added.

Responding to questions about the possibility of a rate cut, Ishmetov highlighted that while the overall trend is encouraging, external risks and slower progress warrant caution.

“Inflation is at 7.1%, but we still see risks. The positive trend is there, but it has slowed. Taking into account external risks, we decided to keep the policy rate unchanged,” he said.

The regulator last raised its policy rate by 0.5 percentage points on March 20, 2025, and has kept it unchanged since then.

Inflation in Uzbekistan eased to 7.1% as of the end of March, but the Central Bank kept its key policy rate unchanged at 14%, citing a slowdown in disinflation and continued price pressures on essential food items.