Uzbekistan Embraces Tight Monetary Policy to Curb Inflation

Uzbekistan’s central bank has pushed back the date for reaching its inflation target and plans to keep monetary policy tight, aiming to rein in prices amid robust growth and regulatory changes.

Central Asia’s second-biggest economy is opening up under President Shavkat Mirziyoyev, who has instigated wide-ranging reforms, including the introduction of a free-floating currency and removal of barriers to capital repatriation. He also is seeking to make the energy sector more competitive through changes to tariffs and subsidies.

While reforms have helped drive a rapid expansion, the central bank has been forced to hold its key rate at 14% ...