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 central bank says.
As of October 21, 2022, annual inflation in Kyrgyzstan amounted to 14.9 percent, having decreased from 15.5 percent in September. The current rise in consumer prices is largely non-monetary in nature and reflects the impact of both the global food and energy markets and the structure of the Kyrgyz economy, in particular high import dependence.
According to the results of January — September 2022, the real GDP growth in Kyrgyzstan amounted to 7.2 percent, including due to the low base effect of the previous year.
The highest growth rates were registered in the sectors of industry, agriculture and services.
The external environment is characterized by the tightening of global financial conditions against the backdrop of intensifying inflationary processes in the world. Monetary conditions in Kyrgyzstan have not changed significantly and remain tight. As a result of timely measures taken by the National Bank, the situation in the money and foreign exchange markets remains relatively stable.
«In the future, uncertainty in terms of both global and regional economic development remains and is a predetermining factor for further economic processes in Kyrgyzstan. Recovery of domestic demand, including through the growth of public spending on wages and social benefits, will also continue to contribute to inflation dynamics,» the statement says.
Taking into account the conditions for development of the external and internal economic environment, the National Bank decided to keep the size of the discount rate. The National Bank also notes that they will adhere to the current direction of monetary policy until pro-inflationary risks are mitigated. In case of any risks, the National Bank does not exclude the possibility of making additional adjustments to the ongoing monetary policy.
The next scheduled meeting of the Board of the National Bank on the issue of the discount rate will be held on November 28, 2022. Depending on the situation, the National Bank of the Kyrgyz Republic will hold an unscheduled meeting.
