The Board of the National Bank of Kyrgyzstan reduced the discount rate (key rate) to 13 percent. Website of the central bank of the Kyrgyz Republic reports.
The growth of real GDP in October 2022 reached 7 percent. Economic activity is supported by the sectors of industry, services and agriculture.
Increase in government spending and remittances are also driving up domestic demand.
«Under these conditions, the course of the monetary policy of the National Bank, as before, is aimed at curbing inflationary processes. Monetary conditions generally remained neutral, and despite negative external shocks and heightened inflationary expectations, the ongoing monetary policy made it possible to minimize pressure on the national currency and provided favorable conditions both for increasing the resource base of the banking sector and for the growth of lending to the economy », the statement says.
It is expected that the slowdown in inflationary processes will continue in 2023.
Therefore, the priority task is to conduct a coordinated fiscal and monetary policy to maintain macroeconomic stability, as well as to carry out structural reforms in Kyrgyzstan, including the implementation of measures to reduce non-monetary inflation factors and saturate the domestic market with consumer goods.
The National Bank is constantly monitoring the evolving situation. If necessary, the National Bank of the Kyrgyz Republic will use additional instruments and take appropriate measures to achieve the goal of ensuring price stability in the medium term.
The next scheduled meeting of the Board of the National Bank on the issue of the discount rate will be held on January 30, 2023.
The rate has remained unchanged since March 2022.
