The Economic Logic Behind Uzbekistan's 14% Interest Rate

This paper examines why the Central Bank of the Republic of Uzbekistan (CBU) maintains its main policy rate at 14.00%. Rather than signaling financial hardship, this high rate is a deliberate strategic tool used to manage rapid national economic growth, cushion temporary price jumps from utility reforms, and protect the purchasing power of the national currency (UZS). By offering strong returns on local savings and guiding responsible lending, the CBU ensures sustainable growth while guiding inflation toward its medium-term 5.0% target.