The Central Bank maintained its 14% policy rate after February headline inflation held at 7.3% and core inflation increased to 6.3%. Strong demand, producer prices and external supply risks kept the stance restrictive.
At its 18 March meeting, the Central Bank of Uzbekistan kept the policy rate unchanged at 14% per annum. The Board said the decline in headline inflation had slowed, while persistent consumer activity and external pro-inflationary risks required tight monetary conditions.
Headline inflation was broadly unchanged at 7.3% in February, while core inflation moved higher to 6.3%. The regulator also pointed to elevated inflation expectations, stronger producer prices, robust trade and real-estate activity, budget expenditure and potential supply-chain pressure from geopolitical tensions.
For issuers and investors, the decision preserved a high nominal funding benchmark and continued support for positive real returns in soum instruments. The path for yields and credit pricing remained dependent on food prices, tariff pass-through, demand, exchange-rate conditions and evidence that inflation was returning sustainably toward the 5% medium-term target.
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