THE RELATIONSHIP BETWEEN INFLATION AND BANK INTEREST RATE POLICY IN UZBEKISTAN

Abstract

This scientific article analyzes the relationship between the inflation rate and the interest rate policy of commercial banks in Uzbekistan, based on economic theory and practical statistical data. The study examines the impact of inflation on loan and deposit interest rates, the mechanisms for regulating monetary policy through the Central Bank's policy rate, and the role of interest rate policy in ensuring price stability. Additionally, it provides a scientific assessment of the monetary policy reforms implemented in Uzbekistan in recent years, the transition to an inflation-targeting regime, and its impact on the banking sector. The research findings indicate that a rise in the inflation rate leads to an increase in bank interest rates, which directly affects credit activity and investment processes. Concurrently, an effective interest rate policy is one of the key instruments for curbing inflation and ensuring macroeconomic stability. The article develops scientific and practical proposals and recommendations for achieving a balance between inflation and interest rate policy in the context of Uzbekistan.