Central Bank of the Republic of Uzbekistan holds seminar explaining its inflation targeting framework and monetary policy transmission

The Central Bank of the Republic of Uzbekistan held a monetary policy seminar at the Banking and Finance Academy on 16 April 2026, setting out how its inflation targeting regime operates and how policy decisions are intended to steer inflation over the medium term. The presentation positioned the policy rate as the core instrument shaping monetary conditions, borrowing costs, and broader economic activity. The seminar framed inflation as a process influenced by supply and demand imbalances, expectations, external factors, and monetary and fiscal conditions. It highlighted that policy effects materialise with a lag as policy rate changes transmit through the banking system to lending and deposit rates, influencing investment and household behaviour, and noted that decisions therefore rely on forecasts and expectations as well as current conditions. The Central Bank also emphasised the role of inflation expectations in driving outcomes and outlined linkages among the policy rate, short-term interest rates, monetary conditions, the output gap, and inflation expectations, alongside the importance of transparency and clear communication under inflation targeting. The Central Bank indicated it will continue engaging with the professional and academic community through seminars and lectures and invited proposals and questions on monetary policy topics.