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National Bank leaves discount rate unchanged – 6 percent

National Bank has left the discount rate unchanged - 6 percent, its site reported.

As of today, deflation processes are observed in Kyrgyzstan. As of September 16, the general price level fell by 0.4 percent. There is a revival in the country's economy.

According to the forecast of the National Bank, a low inflation environment will preserve in Kyrgyzstan in the coming months. Amid low inflationary risks and to strengthen the trend of economic recovery, the maintenance of the level of rates will allow neutralizing the deflationary environment. As a result, annual inflation will return back to the target.

From the beginning of the year, the strengthening of the som comprised 9.4 percent. Situation in the domestic foreign exchange market  is stable.

The discount rate - the interest rate, at which the National Bank provides loans to commercial banks. It affects the interest on loans to commercial banks and stabilizes inflation.

National Bank will continue to evaluate internal and external factors' impact on inflation and implement appropriate monetary policy to keep inflation within a quantitative benchmark of 5-7 percent in the medium term, as the Guidelines for monetary policy defined.

The next meeting of the Board of the National Bank on discount rate is scheduled for November 28, 2016.