Interest rates on bank loans and deposits should move toward balanced levels over the next three to four years, central bank Deputy governor Nodirbek Achilov said on Nov. 4, explaining why lending rates stay high despite the 14% rate.
Asked why banks still lend at 20-34% a year, Achilov said rates have been trending lower. “Average loan rates are down about 2-3 percentage points from August 2025,” he said.
He said mortgage rates were 24-25% three or four years ago and some offers are now around 18%. The highest rates remain on microloans, unsecured short-term loans and fast online loans.
Achilov blamed high borrowing costs on demand for credit that built up before the 2017 liberalization of the economy, and on low savings in earlier years, which left banks short of funds to lend. The deposit base has grown in recent years, he said, and deposits yielding above 18% are becoming rarer.
Further cuts to the rate depend on inflation. “If inflation does not fall, if inflation expectations do not fall, we will not be able to reduce the rate,” he said.
The central bank is working with the International Monetary Fund and the European Bank for Reconstruction and Development, and is counting on more competition among banks. Unsecured and fast loans may stay relatively expensive, Achilov said.
In August 2026, the average soum loan rate for individuals was 21.3%, against 22.1% in January. The board kept the rate at 14% on Nov. 4 and allows for a gradual cut to a single-digit rate in 2027-2029 if inflation falls to the 5% target.
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