The Board of the National Bank of Kyrgyzstan decided to keep the discount rate (key rate) at the level of 14 percent. Website of the bank says.
Some slowdown in inflationary processes is registered in Kyrgyzstan. This is due to the relative stabilization of the situation in the world food markets after a period of significant pressure, as well as the influence of internal factors.
As of May 20, 2022, annual inflation has slowed down to 13.8 percent from 14.5 percent in April.
However, the limited supply of food products in global markets and logistical problems continue to pose pro-inflationary risks.
«In general, external economic conditions for the economy of Kyrgyzstan are still developing under the influence of uncertainty and risks factor. A moderate post-COVID recovery of the country’s economy continues. In the short term, the remaining high uncertainty can significantly correct the emerging trend of the country’s economic recovery,» the bank’s statement says.
Under the current monetary policy course, the increase in lending activity of commercial banks is accompanied by a gradual expansion of their resource base. Tightening of monetary policy made it possible to maintain the attractiveness of som deposits and encourage the population to save.
Taking into account the conditions for the development of the external and internal economic environment, the National Bank decided to keep the size of the discount rate.
«Sustaining the current monetary conditions corresponds to the macroeconomic realities of Kyrgyzstan and in the future will help mitigate possible risks and consequences of the external environment. The National Bank monitors the evolving situation on an ongoing basis and, if necessary, takes appropriate measures to achieve the goal of ensuring price stability in the medium term,» the National Bank of the Kyrgyz Republic stressed.
The next scheduled meeting of the Board of the National Bank on the issue of the discount rate will be held on July 25, 2022. Depending on the situation, the National Bank will hold an unscheduled meeting on the size of the key rate.
