Davronbek Abdiraxmonov
leader of LLT “Nasaf master group”
Email: davronabdirahmonov@gmail.com
Orcid: 0009-0007-5475-9919
Abstract: The article analyzes the theoretical foundations of the monetary policy transmission mechanism under inflation targeting and the specific features of its functioning in Uzbekistan. The interest rate, credit, exchange-rate and expectations channels are assessed using official data of the Central Bank and the National Statistics Committee. The policy rate of 14 percent in 2025, the decline in annual inflation to 7.3 percent, core inflation dynamics and the strengthening of the real interest rate are examined as practical outcomes of transmission. Proposals are developed to deepen the money-market interest-rate corridor, increase the sensitivity of bank lending rates to the policy rate, improve inflation-expectations management, strengthen communication policy and enhance fiscal-monetary coordination.
Keywords: inflation targeting, monetary policy, transmission mechanism, policy rate, inflation, interest-rate channel, credit channel, exchange rate, inflation expectations, price stability.
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