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National Bank of Kyrgyzstan keeps discount rate at 4.25 percent

The Board of the National Bank of Kyrgyzstan kept the discount (key) rate at 4.25 percent. Website of the bank says.

The republic has a moderate recovery in the general price level. This is mainly due to food prices. Economic activity persists in the real sector of economy. An increase in production is observed in all major sectors of the economy, but industry made the main contribution. Domestic demand shows restrained dynamics, trend to a decrease in the inflow of remittances to the country determines conditions for its weakening.

«The continued stimulating nature of monetary policy contributed to a further increase in lending to the economy and a gradual decrease in the cost of credit resources for consumers. The resource base of commercial banks is expanding. The interbank credit market remains active. In general, the money market demonstrates formation of short-term interest rates near the key one. The National Bank conducts operations to sterilize excess liquidity. There is a tendency to its gradual decline in the banking system. The situation in the domestic foreign exchange market is stable,» the National Bank stressed.

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

The next meeting of the Board of the National Bank on the discount rate issue will be held on December 23, 2019.