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National Bank of Kyrgyzstan keeps discount rate at 13 percent

The Board of the National Bank of Kyrgyzstan decided to keep the discount (key) rate at 13 percent. Deputy Head of the Department of Communications and International Cooperation of the National Bank of the Kyrgyz Republic, Ilyichbek Sultankulov, announced at a press conference.

According to him, the National Bank monitors trends in the development of the economic situation in the internal and external environment. Taking this into account, a decision was made to keep the discount rate. Economic activity in Kyrgyzstan continues to grow. In January of this year, the growth rate of real GDP reached 7.4 percent. It was provided by the industrial, service and construction sectors. Domestic consumption is supported by an increase in real wages in the public and private sectors, an increase in consumer lending and an increase in the net inflow of remittances into the country. In the fiscal sector, implementation of a policy of fiscal consolidation has a restraining effect on price dynamics in the republic.

The banking sector remains stable and demonstrates growth in key indicators. The current monetary conditions are conducive to expanding the resource base of commercial banks, demonstrating an increase in the savings behavior of the population. The interbank money and domestic foreign exchange markets remain stable.

In general, there is a high level of excess liquidity in the national currency in the banking system.

The situation on the domestic foreign exchange market remains stable. The National Bank, within the framework of a floating exchange rate regime, takes part in foreign exchange trading only to prevent sharp fluctuations of the exchange rate. Since the beginning of 2024, only one intervention has been conducted to sell dollars in the amount of $23.5 million.

«The adopted decision on the discount rate helps limit pro-inflationary factors and keep inflation within the target values of 5-7 percent in the medium term. Maintaining current monetary conditions will reduce the level of inflation expectations of the population and economic entities,» Ilyichbek Sultankulov stressed.

The next scheduled meeting of the National Bank’s Board on the issue of the discount rate will take place on April 29.