"We are not done yet." The Central Bank of Uzbekistan will maintain tight conditions until inflation reaches 5%
Inflation in Uzbekistan has decreased to 6.2%, but the Central Bank is not yet ready to transition to easing policy. The head of the regulator, Timur Ishmetov, stated that tight monetary conditions will be maintained until sustainable disinflation is achieved and the 5% target is met.
"We are not done yet." Central Bank of Uzbekistan to maintain tight conditions until inflation reaches 5%
The Central Bank of Uzbekistan plans to maintain tight monetary conditions until the decline in inflation becomes sustainable and the figure approaches the target of 5%.
According to him, inflation in Uzbekistan has dropped from about 20% in 2018 and around 10% two years ago to 6.2% now.
The Central Bank expects that by the end of 2026, inflation will average around 6.5%, and next year it will decrease to the target of 5%.
"This is significant progress, but we are not done yet. Achieving this goal will remain a key priority of monetary policy and will be of fundamental importance for maintaining confidence in the economy and sustainable long-term growth," said Timur Ishmetov.
The Central Bank is keeping the policy rate at 14% per annum. According to the head of the regulator, the Central Bank does not intend to ease monetary conditions until disinflation is established.
"We are keeping the policy rate at 14% and intend to keep monetary conditions tight until disinflation becomes sustainable and we achieve our goal," he said.
Ishmetov also reported that Uzbekistan's economy grew by 8.5% in the first half of 2026. He attributed the high growth rates to ongoing investments, an increase in the young population, and ongoing economic reforms.
At the same time, the head of the Central Bank noted, rapid growth and the further opening of the economy increase the requirements for its resilience to external shocks.
"An economy that is growing at this pace and opening up at this pace must be able to absorb shocks that it did not create itself. This is where reserve management comes to the fore," said the Chairman of the Central Bank.
Earlier in his speech, Timur Ishmetov reported that Uzbekistan's international reserves exceeded 72 billion dollars as of September 1 and cover more than a year of imports. The Central Bank intends to continue their diversification by asset classes, currencies, and counterparties.
Ishmetov called on participants to openly discuss the risks associated with gold, the dollar, and reserve diversification.
On September 16, the Board of the Central Bank decided to keep the policy rate at 14% per annum. Despite the decline in inflation and the emergence of signs of more balanced economic dynamics, the persistence of pro-inflationary risks requires maintaining the current tight monetary conditions, the regulator stated.