The BOD of the Central Bank has decided to keep the interest rate unchanged at 14% per annum, the Central Bank's press service said.
According to official data, the decline in inflation observed over recent months is primarily due to the fading out of last year's high base effect. However, the persistent trend of core inflation indicators, robust domestic demand, and external economic uncertainties collectively necessitate maintaining tight monetary conditions.
In May, headline inflation hit 5.5% in annual terms, moving in line with the projected forecast trajectory. This slowdown was mostly driven by the exhaustion of the direct impact from the energy tariff hikes implemented last year.
At the same time, underlying structural inflation indicators remain largely sticky. Specifically, core inflation hovered at 5.7%. While inflation in the services sector cooled down, food inflation showed an unexpected acceleration.
Taking these domestic dynamics into account, and with the goal of securing price stability and anchoring inflation expectations, the central bank deems it essential to maintain a restrictive monetary policy stance. Moving forward, a sustained drop in inflation expectations, the mitigation of secondary effects from tariff hikes, and a positive trajectory in core inflation will clear the path for a gradual easing of monetary conditions.
Over the medium term, the Central Bank's monetary policy will remain laser-focused on steering inflation toward its 5% target, thereby safeguarding macroeconomic stability and preserving the purchasing power of the public.
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