Tashkent, Uzbekistan (UzDaily.com) - The President’s Decree “On improving monetary policy with a phased transition to inflation targeting” was adopted.

According to the Decree, the Central Bank of the Republic of Uzbekistan from 1 January 2020 will ensure a phased transfer of monetary policy mechanisms to the inflation targeting regime with the goal of reducing inflation to 10% in 2021 and a permanent goal (target) inflation rate of 5% in 2023.

From 1 January 2020, interest rates for all types of loans again issued by commercial banks (in national currency), including those allocated under state programs, are set at a level not lower than the Central Bank refinancing rate.

From 1 January 2021, the practice of issuing loans at preferential interest rates is canceled, giving commercial banks the right to independently determine interest rates with the introduction, if necessary, of mechanisms for compensating part of interest expenses.

The decree approved the Concept of joint actions of the Cabinet of Ministers and the Central Bank of the Republic of Uzbekistan to reduce inflation and ensure price stability and the Road Map to reduce inflation and ensure price stability for 2020.

Also, the Commission was formed to coordinate measures to reduce inflation and ensure price stability, one of the main tasks of which is to analyze and critically evaluate directly the field factors of inflation and the reasons leading to price increases.