The Board of the National Bank of Kyrgyzstan decided to keep the discount rate (key rate) at the level of 13 percent. The official representative of the National Bank of the Kyrgyz Republic Aida Karabayeva told at a press conference.
According to her, the decision was made taking into account the trends in the development of economic situation in the internal and external environment. She also noted that the ongoing monetary policy of the National Bank is still aimed at limiting pro-inflationary factors in the economy.
Aida Karabaeva recalled that in the first half of 2023, the economy of Kyrgyzstan showed a growth of 3.9 percent, the largest contribution to which was provided by the service sector. Economic activity is also supported by expanding domestic demand.
At the same time, the prospects for development of the economy of Kyrgyzstan, as before, continue to be influenced by external conditions. And they remain volatile mainly in the region. Inflation remains elevated along with uncertainty on global financial markets.
«These factors lead to more modest expectations regarding the improvement of the economic situation in the short term. The monetary policy of the National Bank is still aimed at reducing the inflation rate to 5-7 percent in the medium term,» Aida Karabayeva said.
Given the current conditions, the National Bank decided to keep the discount rate at 13 percent. In case of any risks, the National Bank does not exclude the possibility of making additional adjustments to the ongoing monetary policy.
The National Bank is constantly monitoring the current situation and, if necessary, will take appropriate monetary policy measures to ensure price stability.
The next scheduled meeting of the Board of the National Bank on the size of the discount rate will be held on August 28, 2023.
