11:50, 30 апреля 2024, Bishkek - 24.kg news agency , Nargiza TOKOEVA
The National Bank of Kyrgyzstan lowered the discount rate from 13 to 11 percent. The head of Communications and International Cooperation Department of the National Bank Aida Karabaeva reported.
According to her, the decision of the National Bank to lower the key rate comes into effect from April 30 this year. The decision was made due to the fact that inflationary processes continue to weaken.
The annual inflation rate in April 2024 amounted to 5.2 percent, down from 7.3 percent in December 2023. It is near the lower boundary of the medium-term monetary policy target of 5-7 percent.
Aida Karabaeva
She told that despite the persistence of uncertainty in the external economic environment, there is a decrease in the intensity of the influence of external factors. Global and regional inflation is gradually declining, which together with the decline in world food prices weakens the external inflationary background.
According to the representative of the National Bank, the banking sector of the country remains stable and demonstrates growth of the main indicators. In general, commercial banks have sufficient liquidity, which creates the basis for further lending to the real sector of the country.
In the money market, short-term interest rates are formed within the interest rate collar established by the National Bank of the Kyrgyz Republic. The domestic foreign exchange market is stable.
The monetary policy pursued by the National Bank since the beginning of 2022 contributed to limiting the growth of inflationary pressure and ensured stabilization of prices in the country.
Aida Karabaeva
«In these circumstances, the National Bank decided to lower the size of the discount rate to 11 percent. This decision is in line with the course of the monetary policy of the National Bank, aimed at maintaining price stability in the country and creating conditions to ensure macroeconomic sustainability,» she explained.
The next scheduled meeting of the Board of the National Bank on the size of the discount rate will be held on May 27.
The discount rate is the interest rate at which the central banks of countries provide loans to commercial banks. The interest rates at which commercial banks provide loans to households and businesses depend on the size of the discount rate.