Tajikistan's central bank raised its benchmark interest rate for the fourth time this year, saying this is in response to the potential risks to the economy from inflationary pressures and inflation expectations, with the purpose of the hike to ensure inflation returns to the bank's target.
The National Bank of Tajikistan (NBT) raised its refinancing rate by another 25 basis points to 13.25 percent and has now raised it 2.50 percentage points following rate increases in February, April and July.
Inflation in Tajikistan rose for the fourth consecutive month to 9.4 percent in August from 9.1 percent in July and the central bank said inflation this year is expected to be in the upper limit of its target range of 5.0 to 9.0 percent around a 7.0 percent midpoint.
For the first 9 months of the year, NBT said inflation was 5.3 percent, with food prices up 3.8 percent, non-food prices 5.8 percent.
Tajikistan, a former Soviet Union republic, is at the crossroads of Central Asia, bordering China to the east, Kyrgyzstan to the north, Uzbekistan to the west, and Afghanistan to the south.
The economy relies heavily on remittances and tourism, with about one-third of its gross domestic product coming from money sent back from Tajiks working abroad, mainly in Russia.
NBT said it was noteworthy that the outbreak of the COVID-19 pandemic last year, which led to a drop in tourism, services and transport had "radically changed the structure of the world economy," along with the balance of supply and demand.
The National Bank of Tajikistan (NBT) raised its refinancing rate by another 25 basis points to 13.25 percent and has now raised it 2.50 percentage points following rate increases in February, April and July.
Inflation in Tajikistan rose for the fourth consecutive month to 9.4 percent in August from 9.1 percent in July and the central bank said inflation this year is expected to be in the upper limit of its target range of 5.0 to 9.0 percent around a 7.0 percent midpoint.
For the first 9 months of the year, NBT said inflation was 5.3 percent, with food prices up 3.8 percent, non-food prices 5.8 percent.
Tajikistan, a former Soviet Union republic, is at the crossroads of Central Asia, bordering China to the east, Kyrgyzstan to the north, Uzbekistan to the west, and Afghanistan to the south.
The economy relies heavily on remittances and tourism, with about one-third of its gross domestic product coming from money sent back from Tajiks working abroad, mainly in Russia.
NBT said it was noteworthy that the outbreak of the COVID-19 pandemic last year, which led to a drop in tourism, services and transport had "radically changed the structure of the world economy," along with the balance of supply and demand.
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