"We are completely independent." The head of the Central Bank on decisions on the key rate and monetary policy.
Central Bank Chairman Timur Ishmetov stated that the regulator does not experience pressure from the Uzbek government when making decisions on the key interest rate and foreign exchange policy. He called the Central Bank "completely independent" in these matters, but noted that the effectiveness of these instruments needs to be improved.
In an interview with the Financial Times, Timur Ishmetov, Governor of the Central Bank of Uzbekistan, declared the regulator's complete independence in setting the key interest rate and conducting foreign exchange policy.
According to Ishmetov, the role and operating model of the Central Bank have undergone significant changes over the course of nearly a decade of economic reforms.
"Compared to the previous period, the Central Bank has become very independent in making decisions on the key interest rate. We are completely independent in this regard," Timur Ishmetov emphasized.
He also added: "Regarding the exchange rate regime, we have gradually transitioned to a free float. And here, too, we are completely independent."
Ishmetov noted that the Central Bank does not experience pressure when making such decisions.
"We are not experiencing the problems that some central banks face even today when governments exert pressure on them. We are lucky – we do not have this problem," he stated.
At the same time, the Governor of the Central Bank acknowledged the need to further improve the effectiveness of monetary policy instruments.
"The monetary policy transmission mechanism is still operating unevenly," said Timur Ishmetov.
The transmission mechanism describes how the Central Bank's decisions, particularly changes to the key interest rate and money market conditions, ultimately impact bank interest rates, lending, demand, and inflation.
"We need to invest more resources and time in developing financial market infrastructure—both the foreign exchange market and the national currency market—and move toward financing in the national currency," the regulator's head stated.
Ishmetov emphasized that the Central Bank is already actively investing in this area. "This will make our monetary policy instruments more effective," the Central Bank Governor concluded.
In May 2025, the rating agency S&P noted that, despite progress in monetary policy, the Central Bank of Uzbekistan still faces constraints due to potential political interference and preferential lending programs. Regulation in the banking sector was assessed as reactive.