Tashkent, Uzbekistan (UzDaily.com) – In accordance with the decision of the Board of the Central Bank, from 1 January 2020, the main rate of the Central Bank and the interest rate band for monetary operations will be introduced.

At the same time, the basic interest rate is set at the level of the Central Bank’s current refinancing rate - 16%, a percentage corridor of ± 1 percentage point.

At the same time, the Central Bank refinancing rate remains valid in the cases described in the legislation, as well as in other cases, its size is equal to the size of the basic rate.

The operational objective of the Central Bank is to effectively manage interest rates in the interbank money market and ensure that they are within the established interest rate band using the base rate and monetary operations.

In order to prevent sharp fluctuations in interest rates in the money market, to form them within the established interest rate band or near the level of the main interest rate, the Central Bank uses the following types of monetary operations (instruments) *:

- One-day (overnight) currency swaps and permanent access repos are provided at fixed interest rates and determine the upper limit of the interest rate band (base rate plus 1 percentage point);

- One-day (overnight) deposits of constant access are provided at fixed interest rates and determine the lower limit of the interest corridor (basic rate minus 1 percentage point);

- currency swap auctions, repos and deposit auctions for up to 2 weeks, the interest rates for which are formed near the level of the Central Bank’s basic rate;

- placement of short-term (three- and six-month) bonds of the Central Bank among commercial banks through holding auctions to regulate the structural liquidity surplus in the banking system and form a base of collateral for liquidity provision operations for commercial banks.

Information on currency swap auctions, repos and deposit auctions will be regularly published on the official website of the Central Bank.