The Board of the National Bank of Kyrgyzstan decided to keep the discount rate at 13 percent. The decision comes into force on Tuesday. Ilyichbek Sultankulov, Deputy Head of the Communications and International Cooperation Department of the National Bank of the Kyrgyz Republic, announced it at a press conference in Bishkek.
«External economic conditions, which have a direct and indirect impact on the economy of Kyrgyzstan, are still under the influence of the uncertainty factor and remain ambiguous, volatility in external financial markets persists. Despite the fact that global food and oil markets show a gradual downward trend in prices, high inflation expectations persist in most countries. A favorable factor is the gradual decline in inflation rate in the region,» he said.
According to him, following the results of three months, the real GDP growth rate in the republic reached 4.4 percent. Coordinated actions as part of fiscal and monetary policies are one of the predetermining factors for stable inflation dynamics in the medium term. Domestic demand is supported by strong growth in real wages, as well as growing dynamics in consumer lending.
«Consumer prices have increased by 4.2 percent since the beginning of the year (as of May 19, 2023), inflation reached 11.2 percent in annual terms. Formation of the current inflation rate is mainly due to the influence of the effect of the revision of the cost of certain administrative prices (tariffs), as well as the stabilization of the price situation in the world food markets. As a result of timely measures taken by the National Bank, the situation in the money and foreign exchange markets remains relatively stable. Taking into account the current conditions, the National Bank of the Kyrgyz Republic decided to keep the discount rate at the level of 13 percent,» he said.
The National Bank monitors the evolving situation on an ongoing basis and, if necessary, will use additional tools and take appropriate monetary policy measures.
The next scheduled meeting of the Board of the National Bank of the Kyrgyz Republic on the issue of the size of the discount rate will be held on July 31.
