The Board of the National Bank of Kyrgyzstan decided to keep the discount rate (key rate) at the level of 6.5 percent. The bank’s website says.
It is noted that there has been a recovery in economic activity in the world and in the countries — trade partners of Kyrgyzstan. This will allow to gradually resume trade and logistics routes and intensify the foreign economic activity of the republic. However, the slow pace of vaccination both globally and in the region, coupled with an increasing number of new cases of COVID-19 infection, are limiting a full-scale recovery of the economic activity.
The economy of Kyrgyzstan shows the first positive signals amid a gradual revival of activity.
Domestic consumption remains relatively moderate and is supported by the inflow of remittances into the country. In January-March 2021, the net inflow of remittances from individuals increased by 22.4 percent, amounting to $ 420 million. The situation in the domestic foreign exchange market is relatively stable, the National Bank conducts currency interventions to prevent sharp fluctuations of the exchange rate.
«The spread of new strains of COVID-19 and the slower than expected rate of vaccination of the world’s population still pose risks to the recovery of both global and regional economies. The upward trend in world prices for certain food products is expected to continue until the end of 2021. A faster recovery of the economies of the countries — trading partners will lead to resumption of trade and economic relations of Kyrgyzstan and an increase in business activity within the country,» the National Bank of the Kyrgyz Republic stressed.
Taking into account the prerequisites for development of the external environment and internal economic conditions, the National Bank decided to keep the discount rate at the level of 6.5 percent. In case of any risks, the possibility of additional adjustments to the current monetary policy is not excluded.
The next meeting of the Board of the National Bank of the Kyrgyz Republic on the size of the discount rate will be held on July 26, 2021.
