At the Congress of Financiers of Kazakhstan, Mamariso Nurmuratov, Chairman of the Central Bank of Uzbekistan, highlighted the importance of macroeconomic and financial stability in the face of global shocks. He emphasized the evolving role of central banks, which must now address financial stability and consolidation alongside traditional concerns of price stability.
Nurmuratov acknowledged the challenges central banks face in maintaining price and financial stability amidst high inflation expectations. He noted,
Today we all see high stability and incompetence in inflationary processes. According to the experience of Uzbekistan, I say that by the end of October, we reached 9% of the annual inflation rate and it falls within the framework of our forecasts, but at the same time I must note that the base inflation rate is still formed by about 0.6% of a point above the total inflation.
He further stressed the need for the Central Bank of Uzbekistan to use its operational tools to reduce inflationary expectations of both businesses and the population. In the context of high uncertainty and volatility, Nurmuratov underscored the importance of clear and comprehensible signals from monetary policy. He identified the main challenges for price stability as the backwardness of some components of domestic supply and increased domestic demand, which continues to be fueled by fiscal policy measures.
These remarks come at a time when Uzbekistan’s economy is projected to grow by 5.1% in 2023. The country’s GDP is currently at $80.4 bn, with a GDP per capita of $2254.9. The fiscal deficit is expected to remain unchanged in 2023. These figures underscore the significance of Nurmuratov’s comments and the ongoing efforts to maintain economic stability in Uzbekistan.
Nurmuratov also addressed the weak transformation of monetary policies, citing unmet demand and irrational behaviour of agents as key issues. He recommended macroprudential measures to limit unhealthy financing and reduce risks to financial stability.
He concluded by emphasizing the need for fiscal consolidation and a coordinated fiscal policy in the context of economic growth. Nurmuratov stated,
In the past 3-4 years, the Economy has adapted to life in a high budget deficit, which places a burden on monetary policy. And in these conditions, we continue to adhere to the position on the need for fiscal consolidation, the voice of monetary policy should be gradually increased to conduct a coordinated fiscal policy in the conditions of economic activity growth,” Nurmuratov stated.
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