The July 2024 decision eased the policy rate as core inflation slowed to 5.9%, although headline inflation remained 10.6%. Monetary conditions stayed restrictive relative to the medium-term inflation objective.
On 25 July 2024, the Central Bank of Uzbekistan reduced its policy rate by 50 basis points, from 14% to 13.5%. The decision reflected a sustained decline in core inflation and lower-than-expected second-round effects from energy-tariff adjustments.
Headline inflation stood at 10.6% year on year in June, while core inflation fell to 5.9%, down 2.6 percentage points from the start of the year. The Bank still described monetary conditions as relatively tight and expected the positive output gap of 0.5–0.6% to close by year-end.
At the decision date, the Central Bank projected 2024 real GDP growth of 5.7–6.2% and year-end inflation of around 9%; both were forecasts, not realized outcomes. The rate cut lowered the reference point for UZS funding and the local yield curve, but its investment impact depended on inflation expectations, currency conditions and the transmission of policy into bank and bond pricing.
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