The main instrument is the key interest rate at which the central bank provides funds to banks and attracts them. Changes in this rate are transmitted through the economy via interbank rates, loan and deposit rates, affecting decisions by individuals and companies on whether to spend now or save.

Policy is called tight when the rate is raised to curb price growth, and loose when lowered to support economic activity. In addition to the rate, requirements for mandatory bank reserves, operations to provide and withdraw liquidity, and communication about the regulator's future intentions are applied.

The Central Bank of Uzbekistan conducts policy under inflation targeting: the main goal is to achieve and maintain inflation near the stated medium-term target, with the main instrument being the base rate, decisions on which are made at regular meetings.

For private investors, rate decisions have direct consequences. When raised, rates on new deposits and bond issuances increase, but the price of already-purchased fixed-coupon bonds falls. When lowered, the opposite occurs. Therefore, the meeting calendar and regulator statements matter more for the debt market than most corporate news.