TASHKENT, June 17 (Xinhua) -- The Central Bank of Uzbekistan decided on Wednesday to keep its policy rate unchanged at 14 percent per annum, citing robust domestic demand and persistent external economic uncertainties.
According to the bank's statement, headline inflation fell to 5.5 percent in May due to the fading base effects of last year's energy tariff hikes. Core inflation hovered at 5.7 percent, with accelerating food prices offsetting a slowdown in services inflation.
The bank noted that economic momentum in the country remains strong, driven by robust growth in retail trade, services, tourism, and investment volumes. The recent increase in fiscal spending is also expected to support demand and economic activity in the coming quarters.
The regulator maintained its inflation forecast at around 6.5 percent by the end of 2026, with gross domestic product growth projected within the 7.0-7.5 percent band.
In addition, the bank reiterated its commitment to bringing inflation down to its medium-term target of 5 percent to ensure macroeconomic stability.
The next rate-review meeting of the Central Bank Board is scheduled for July 29. ■