Central Bank Decision#
On Wednesday, Uzbekistan’s central bank decided to keep its policy interest rate unchanged at 14.00%. This decision comes as the bank adopts a more cautious approach due to ongoing inflation pressures and increasing external risks.
Inflation Trends#
The Central Bank of the Republic of Uzbekistan noted that the process of reducing inflation has stalled. As of February, the overall consumer price inflation remained steady at 7.3% compared to the previous year. Additionally, core inflation, which excludes volatile items like food and energy, rose to 6.3% year-over-year, up from 5.7% in December 2025.
Elevated Inflation Expectations#
The bank has observed that inflation expectations are now consistently high rather than stabilizing. This is partly due to a global environment that is increasingly seen as contributing to inflation, driven by geopolitical tensions that have raised energy and food prices worldwide.
Future Policy Outlook#
The central bank indicated that the risks of imported inflation, combined with strong domestic demand, suggest that the current high interest rates may need to remain in place for an extended period. The recent statement marks a shift from the more lenient language used in January, as the bank now clearly states that it may tighten policy further if necessary.