The Board of the National Bank of Kyrgyzstan decided to keep the discount (key) rate at 9 percent. This decision comes into force today, May 27. The press service of the central bank reported.
As the National Bank of the Kyrgyz Republic noted, the external environment is still characterized by uncertainty in the global financial and commodity markets. This is due to changes in the trade policies of leading countries and geopolitical factors, which creates risks for countries with an emerging market and an open economy, including Kyrgyzstan.
Despite external challenges, high economic activity persists in the republic. In January-April 2025, real GDP growth amounted to 11.7 percent compared to the same period in 2024. The main contribution to GDP growth was made by the services, construction and industry sectors. Increased consumer demand is noted against the background of growth in real incomes of the population and an increase in investment activity.
Price dynamics in the republic remain moderate. Since the beginning of this year, consumer prices have grown by 2.9 percent, and annual inflation has amounted to 7.7 percent. According to the National Bank, current inflation is mainly due to the effect of the revision of electricity tariffs and the seasonal increase in the cost of fruit and vegetable products, which is in line with the bank’s expectations.
The interbank money market remains active, especially in the swap operations segment, while short-term rates fluctuate within the interest rate corridor set by the National Bank of the Kyrgyz Republic. The situation in the domestic foreign exchange market is assessed as relatively stable, with the exchange rate remaining flexible.
The country’s banking sector demonstrates stability and high liquidity. In January-April 2025, lending to the economy increased by 15.6 percent, mainly due to consumer loans, trade and agricultural financing. The deposit base of the banking system increased by 16.1 percent over the same period.
The National Bank predicts that annual inflation by the end of 2025 will be within the target of 5-7 percent.
The decision to keep the discount rate at 9 percent was made taking into account the volatility of prices in the global food and raw materials markets, the impact of changes in electricity tariffs and increased domestic demand. This is in line with the monetary policy course aimed at maintaining price stability and macroeconomic sustainability.
The National Bank of the Kyrgyz Republic will continue to adhere to a balanced approach and assess external and internal inflation factors, without excluding the possibility of adjusting monetary policy in the event of risks to price stability.
The next scheduled meeting of the National Bank’s Board on the issue of the discount rate will be held on July 28.