Introduction to Uzbekistan’s Monetary Policy
The Central Bank of Uzbekistan has announced its next Board meeting to review the key policy rate, which is scheduled to take place on March 18, 2026. This meeting is crucial as it will determine the direction of the country’s monetary policy for the coming period.
Previous Policy Rate Decisions
At its previous meeting, the Board decided to maintain the policy rate at 14% per annum. This decision was made due to the stronger-than-expected economic activity in 2025, driven primarily by resilient aggregate demand. Additionally, inflation has continued to decrease, with the slowdown in goods price growth becoming increasingly broad-based.
Historical Context of Policy Rate Changes
In July 2024, the Central Bank made a significant move by reducing the policy rate to 13.5%, which was the first time it had dipped below 14% in seven years. The rate remained steady at that level until March 2025, when it was increased back to 14%, where it currently stands.
Implications of Policy Rate Changes
The policy rate has a significant impact on the economy, as it influences the cost of borrowing and spending. A lower policy rate can stimulate economic growth by making borrowing cheaper, while a higher rate can help control inflation by reducing borrowing and spending.
Conclusion
In conclusion, the Central Bank of Uzbekistan’s decision to review the key policy rate on March 18, 2026, is an important event that will shape the country’s monetary policy. The bank’s previous decisions to maintain or change the policy rate have been influenced by the state of the economy, including economic activity and inflation. As the economy continues to evolve, it is essential to monitor the policy rate and its implications for the country’s economic growth and stability.
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