The Central Bank lowered the main rate to 14% per annum

According to the report of “Gazeta.Uz”, the Central Bank changed the main rate for the first time in eight months, lowering it from 15% to 14%. “This will completely remove the additional burden imposed by the increase in interest rates in response to risks in March last year,” the regulator said.

On March 16, the Board of the Central Bank of Uzbekistan decided to reduce the main rate by 1% to 14% per annum, the press service of the Central Bank reported.

The economy began to observe a downward trend in inflation after its peak values, the Central Bank noted. At the same time, according to the regulator, signals of the negative impact of tough external financial conditions on domestic economic activity are beginning to appear.

“Reducing the main rate by 1 percentage point will completely remove the additional burden set by the increase in interest rates in response to risks in March last year,” the Central Bank said.

Setting the main rate at 14% per annum with a downward trend in the inflation forecast (8.5-9.5%) will also ensure the preservation of moderately tight monetary conditions, the regulator believes.

Recall that the previous rate of 15% was set in July 2022, then it decreased from 16% approved in June. In mid-March 2022, it was increased for the first time since 2018, and immediately by 3% – from 14 to 17%.