The Impact of the Central Bank Refinancing Rate on Inflation

Today, maintaining price stability and reducing inflation to the target level is one of the most pressing macroeconomic issues in our country. This article examines the impact of the Central Bank's refinancing rate, which is the main instrument of the monetary policy of the Republic of Uzbekistan, on the country's inflation rate. The primary objective of the article is to empirically evaluate how the tightening or easing of monetary policy aligns with the real price dynamics in the economy. The main research problem is the time lag observed between the Central Bank's decisions and their implementation. Furthermore, inflation is influenced not only by monetary factors but also by external factors. To study these issues, the article utilizes an econometric model and provides recommendations based on the final results.