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National Bank of Kyrgyzstan keeps discount rate at 5 percent

The Board of the National Bank decided to keep the discount rate (key rate) at 5 percent. Official website of the bank says.

Epidemiological situation in the world remains tense. Baseline forecasts by international organizations assume that the global economic recovery will be long, uneven and fraught with uncertainty. Volatility in global commodity markets persists.

Recovery of economic activity in Kyrgyzstan slowed down somewhat amid the influence of negative external and internal factors.

A significant decline in production volumes continues in almost all sectors of the economy. Return of economy to the trajectory of sustainable growth will largely depend on the epidemiological situation in the country, pace of recovery of the economies of the states — trading partners, as well as on the dynamics of prices in world commodity markets.

«The situation in the monetary sector as a whole has not undergone significant changes. Short-term money market rates have a common direction with the discount rate of the National Bank and continue to fluctuate within the established interest rate corridor. The activity in the interbank credit market remains. The loan portfolio and deposit base continue to grow,» the message says.

Therefore, the National Bank of the Kyrgyz Republic decided to keep the discount rate at the level of 5 percent. At the same time, the instruments of monetary policy as a whole will be aimed at stimulating the real sector of the economy.

The National Bank regularly assesses external and internal factors influencing inflation and, depending on the economic situation, will take appropriate monetary policy measures. Should any risks arise, the bank has sufficient tools to mitigate their consequences.

The next meeting of the Board of the National Bank on the size of the discount rate will be held on January 25, 2021.