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National Bank of Kyrgyzstan keeps discount rate at 4.5 percent

Board of the National Bank of Kyrgyzstan kept the discount rate at 4.5 percent. Website of the bank says.

According to it, there is a growth trend in the economy, which formed mainly in the manufacturing industry. Inflow of remittances into the country and the real wages growth continue to support the internal demand. Thus, in January 2019, the net inflow of remittances increased by 11.2 percent, real wages — by 4.4 percent.

«Direction of the monetary policy aimed at stimulating the real sector of the economy has contributed to the expansion of lending to the economy. Short-term money market rates are within the interest rate collar set by the National Bank and are close to the key rate. An increase in activity was recorded at the interbank credit market,» the message says.

Excess liquidity in the banking system causes operations on its withdrawal by the National Bank of the Kyrgyz Republic. Situation in the domestic foreign exchange market is stable.

Under these conditions, it was decided to keep the discount rate. In case of risks in the internal and external environment, the National Bank may adjust the direction of the monetary policy.

The next meeting of the Board of the National Bank on the discount rate issue will be held on May 27, 2019.

Recall, in February 2019, the bank for the first time in eight months reduced the discount rate by 0.25 percent.