Uzbekistan's Central Bank has decided to keep its policy rate at 14 percent, a move aimed at curbing inflation and maintaining economic stability. This decision comes as a continuation of the bank's efforts to manage economic activity and inflation in the country. Despite a growing economy in the third quarter, the bank's statement highlights the importance of tight monetary conditions to combat inflationary pressures. The bank attributes the slowdown in annual inflation in September to a combination of factors: the persistence of last year's inflationary influences, the stabilizing effect of rising exchange rates on goods prices, and the ongoing growth in economic activity. However, the bank also acknowledges the ongoing risks associated with external supply shocks and high service inflation, which could impact inflation rates negatively. The Central Bank's Board, considering these factors, has chosen to maintain the policy rate at 14 percent annually, with a focus on achieving a medium-term inflation target of 5 percent.
