Uzbekistan Leaves Key Rate Unchanged at 14%

The Central Bank of Uzbekistan kept its key interest rate unchanged at 14% during its March 2026 meeting, signaling a cautious stance amid persistent inflation. Policymakers noted that the recent decline in headline inflation has slowed, with the rate holding broadly steady at 7.3% in February due to rising food prices, while core inflation has begun to trend upward, reaching 6.3%. Economic activity also remained robust, supported by strong aggregate demand. Additionally, rising geopolitical tensions pose upside risks to inflation, as disruptions to global supply chains could drive up energy and food prices, while shifts in logistics routes may increase transportation costs. Thus, the central bank deemed it necessary to maintain a restrictive monetary policy to ensure price stability and anchor inflation expectations. The Board also signaled that policy could be tightened further if these risks materialize and delay progress toward the inflation target.