The Central Bank of the Republic of Uzbekistan’s Board decided to keep the policy rate unchanged at 14 percent per annum, maintaining a tight monetary policy stance to support a sustained decline in inflation. Economic activity in 2025 was stronger than expected, driven mainly by resilient aggregate demand. Inflation has continued to slow, with the deceleration in goods price growth becoming broad-based, but the Bank flagged risks from still-elevated services inflation linked to demand factors and price increases for certain food items. Headline inflation fell to 7.3 percent year-on-year in December 2025, within the forecast range, while core inflation declined to 5.7 percent year-on-year, supported by tight monetary conditions, exchange rate appreciation and import price dynamics. The Bank indicated that if inflation and inflation expectations continue to decline steadily over the coming quarters, it may be possible to consider reducing the policy rate, while keeping monetary conditions tight in view of changes in administered prices.
Central Bank of the Republic of Uzbekistan 2026-01-28
Central Bank of the Republic of Uzbekistan keeps policy rate at 14 percent as inflation continues to ease
The Central Bank of the Republic of Uzbekistan maintained its policy rate at 14% to support a sustained decline in inflation, noting stronger-than-expected economic activity in 2025 and risks from elevated services inflation. Headline inflation fell to 7.3% year-on-year in December 2025, with core inflation at 5.7%, and the Bank may consider a rate cut if inflation continues to decline.