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National Bank of Kyrgyzstan keeps discount rate at 4.25 percent

The Board of the National Bank of Kyrgyzstan decided to keep the discount rate (key rate) at 4.25 percent. Website of the National Bank of the Kyrgyz Republic reported.

It is noted that the country’s economy shows moderate growth rates. Industry, construction and the services sector make the main contribution to its growth. The net inflow of remittances to the country in January — July 2019 decreased by 13.4 percent. At the same time, the growth trend in real salaries continues; it grew by 4.6 percent as a result of January — July 2019.

«Situation in the monetary sector is stable. Short-term interest rates in the money market generally fluctuate in the range of the interest corridor established by the National Bank. Activity persists in the interbank credit market. The stimulating direction of the current monetary policy contributes to an increase in lending to the economy and a gradual decrease in the cost of credit resources for end consumers. The resource base of commercial banks continues to expand,» the National Bank of the Kyrgyz Republic stressed.

The level of excess liquidity in the banking system is reduced mainly as a result of operations of the public finance sector. The domestic foreign exchange market is stable.

«In general, the current macroeconomic situation and trends emerging in the external environment are in line with the expectations of the National Bank. In these conditions, it was decided to keep the discount rate. Depending on the economic situation, the National Bank will take the necessary measures of monetary policy. If risks arise in the internal and external environment, the National Bank may consider the possibility of adjusting of the current direction of the monetary policy,» the National Bank of the Kyrgyz Republic said.

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