Uzbekistan Holds Interest Rate At 14%, Projects 7% Inflation In 2026

(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 4. Uzbekistan's Central Bank has kept its key policy rate unchanged at 14% per year and forecast inflation of around 7% by the end of 2026, citing persistent price pressures from strong domestic demand and volatility in global food and energy markets, following a decision made by the Central Bank's Board at a meeting on Wednesday, November 4.

According to the Central Bank of Uzbekistan, annual inflation stood at 6.4% in September, while core inflation reached 5.5%. Inflation expectations have continued to decline, although strong domestic demand remains a factor sustaining price pressures.

The Central Bank also noted that volatility in international food and energy markets is increasing inflationary risks.

According to the regulator, positive real interest rates and the continued attractiveness of savings in Uzbek soums are helping maintain tight monetary conditions.

The Central Bank expects inflation to reach around 7% by the end of 2026 before declining to its target level of 5% by the end of 2027.

Meanwhile, Uzbekistan's economy expanded by 8.3% in January–September 2026, reflecting strong economic activity and domestic demand.

Inflationary trends in Uzbekistan have shown signs of moderation in 2026, although price pressures remain across several segments of the consumer market. Annual inflation stood at 6.2% in August before reaching 6.4% in September, while core inflation remained at 5.5%. Earlier in the year, higher food prices, adjustments to regulated energy tariffs and increases in service costs contributed to inflationary pressures. The Central Bank continues to monitor domestic demand and external price fluctuations as key factors affecting the country's inflation outlook.

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