Elmurodova Durdona Umidjon qizi,
2nd-year student, Faculty of Economics
Tashkent State University of Economics
Tashkent, Uzbekistan
Email: felinus744@gmail.com
ORCID: 0009-0006-0706-0235
Abstract. Monetary policy reforms in Uzbekistan play a significant role in the Central Bank’s efforts to strengthen its independence and transparency, transition toward inflation targeting, and liberalize the exchange rate. The monetary policies of the Central Bank of Uzbekistan include mandatory reserve requirements for commercial banks, the discount rate, open market operations, and currency interventions. Through these policies, the Central Bank ensures price stability and inflation control. These policies contribute not only to Uzbekistan’s overall economic growth but also to the welfare of Uzbek households. This article examines the Central Bank of Uzbekistan’s 2017 monetary policies and their influence on overall economic activity and Uzbekistan’s economic growth by analyzing key macroeconomic indicators such as GDP growth rate, inflation rate, tax revenue, policy rate, and trade balance. The analysis is based on a quantitative approach using a regression model applied to time-series data. However, the regression analysis indicates that the results are not statistically significant due to limited data, as monetary policy reforms in Uzbekistan started in 2017. These findings underscore the importance of strengthening data availability and institutional capacity to enhance the effectiveness of monetary policy implementation in Uzbekistan. The article also presents policy recommendations offered by IMF staff to the Central Bank regarding both fiscal and monetary policy, highlighting the steps toward inflation targeting. Despite several interventions to lower inflation, the inflation rate increased due to external shocks, such as the coronavirus pandemic, which caused an increase in economic uncertainty. Following the emergence of COVID-19 in Uzbekistan, inflation began to rise, and therefore, the IMF suggested maintaining high interest rates and continuing the transition toward inflation targeting.
Key words: Monetary policy, Inflation rate, macroeconomic indicators, Central bank of Uzbekistan, IMF recommendations, inflation targeting.