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National Bank of Kyrgyzstan keeps discount rate at 4.75 percent

The Board of the National Bank of Kyrgyzstan kept the discount rate at the level of 4.75 percent. The Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov said at a press conference.

According to him, as of today, inflation risks are balanced and are in line with the expectations of the National Bank of Kyrgyzstan. Domestic demand is driven by steady growth in real wages and positive dynamics of remittance inflows. Economic activity in the main sectors of the economy persists.

«Short-term money market rates are within the interest rate collar set by the National Bank, and gradually approach the discount rate. The increase in excess liquidity in the banking system in December led to a decrease in activity in the interbank credit market. In this regard, the National Bank continued to conduct operations to withdraw excess liquidity,» Tolkunbek Abdygulov stressed.

He noted that the ongoing fiscal consolidation had a positive impact on the level of liquidity in the banking sector and did not cause inflation risks.

Maintaining of a soft monetary environment continues to support the expansion of the loan portfolio and the increase in the deposit base of commercial banks.

In general, the domestic foreign exchange market remains stable. In December, there was a significant excess of demand for foreign currency over its supply. This led to interventions on the sale of foreign currency by the National Bank.

The next meeting of the Board of the National Bank on the discount rate issue will be held on February 25, 2019.