As part of efforts to foster open dialogue with the professional and academic community, a seminar on monetary policy was held at the Banking and Finance Academy on 16 April 2026.
During the seminar, information was presented on the essence of monetary policy and its role in economic processes. Particular attention was given to inflation, which was explained not as a simple rise in prices, but as a process shaped by imbalances between supply and demand, market expectations, external factors, and monetary and fiscal conditions. In this context, it was noted that under Uzbekistan’s inflation targeting regime, a target level for inflation is set and monetary policy decisions are aimed at achieving this target over the medium term. The policy rate was presented as the central instrument of this framework, shaping monetary conditions, borrowing costs, and overall economic activity.
The seminar also highlighted that the effects of monetary policy decisions on the economy materialize gradually, with a time lag. Changes in the policy rate are transmitted through the banking system to lending and deposit rates, which in turn affect business decisions, investment, and households’ financial behavior. For this reason, monetary policy decisions are based not only on current conditions, but also on forecasts and expectations. Inflation expectations were presented as a vital component of this process, since market participants’ expectations about future price developments can influence their decisions and, in turn, affect inflation dynamics. The presentation also outlined the relationship between the policy rate, short-term interest rates, lending and deposit rates, monetary conditions, the output gap, and inflation expectations.
Overall, monetary policy was presented as an important mechanism for shaping the general direction and conditions of the economy. It helps form the environment in which financial decisions are made, from borrowing and investing to saving. The clearer, more consistent, and more credible this framework is, the stronger the foundation it creates for sustainable economic development. The presentation also noted that transparency in the conduct of monetary policy and clear communication of decisions to the public are among the key principles of the inflation targeting regime.
The Central Bank places strong emphasis on maintaining open dialogue with the professional and academic community. Such seminars and meetings provide an important platform for explaining the essence of monetary policy more broadly, increasing awareness of economic processes, and encouraging constructive exchange of views. Proposals to organize seminars and lectures on monetary policy issues, as well as questions in this area, can be directed to the Central Bank.
