Kyrgyzstan's National Bank lowers bank rate to 5.5 percent to stimulate economy

The National Bank of Kyrgyzstan has lowered the bank rate to 5.5 percent to stimulate the economy. The Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov told today at a press conference.

He noted that the regular meeting of the Board of the National Bank took place the day before. It was decided to lower the size of the bank rate by 0.5 percent that is connected with the state of the economy.

The general price level is reducing. In November, there was registered a deflation of 0.7 percent in annual terms. In the third quarter, the main index of economic activity moved into a positive phase.

For 10 months, real GDP grew by 2.7 percent. Without Kumtor, the figure was 3.3 percent. 

"There is some recovery in domestic consumption. These factors will have a moderate impact on the formation of inflation in future periods," Tolkunbek Abdygulov said.

The National Bank noted that it intended in the coming period to follow stimulating monetary policy in the absence of external shocks.