Central Bank Of Uzbekistan Reveals Level Of Policy Rate

(MENAFN- Trend News Agency) TASHKENT, Uzbekistan, July 25. The Central Bank of Uzbekistan (CBU) decided to reduce the policy rate to 13.5 percent per year, Trend reports.

According to the CBU, the policy rate has decreased by 0.5 percentage points compared to the previous 14 percent per year.

The bank noted that the reduction of the policy rate was due to the downward trend in core inflation and inflation expectations, lower headline inflation, and relatively tight monetary conditions.

“Core inflation continued its downward trend, reaching 5.9 percent in June and decreasing by 2.6 percentage points since the beginning of the year. This is attributed to the fact that the secondary effect of energy tariff changes was lower than expected, thus signaling the probability of a continuation of the downward trend in inflation in the future,” the CBU stressed.

The CBU stressed that in June, headline inflation amounted to 10.6 percent year-on-year, with a substantial decline in the persistent inflation components as well as fruit and vegetable prices. Also, price dynamics in the external markets continue to have a downward impact on imported inflation.

Earlier in June, the bank kept the level of the policy rate in Uzbekistan unchanged (14 percent per year) and projected the macroeconomic development indicators and year-end inflation will be within the framework of the baseline scenario forecast.

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