The National Bank of Kyrgyzstan has decided to keep the discount rate at 9 percent. This decision comes into effect today, August 27. The head of the Communications and International Cooperation Department, Aida Karabaeva, reported.
As of August 2024, annual inflation in Kyrgyzstan decreased to 3.6 percent. The slowdown in consumer price growth is due to cheaper food products, including vegetables, fruits and dairy products, which led to deflation in monthly terms. The growth in prices for non-food goods and services is also slowing down.
Economic activity in the country remains high. In January-July of 2024, the economy grew by 8.7 percent in real terms. The growth of investment and consumer activity supports economic development, stimulating demand and lending.
The banking system remains stable with a high level of liquidity and resource base, which contributes to the expansion of lending. The domestic foreign exchange market remains flexible due to the floating exchange rate, and foreign exchange interventions are carried out to smooth out sharp fluctuations in the exchange rate.
The external economic environment is characterized by uncertainty due to geopolitical factors and price volatility in world markets. Inflationary pressure in some partner countries of the Kyrgyz Republic also persists.
Internal factors, such as the revision of the state tariff policy and salary increases, may have a pro-inflationary effect in the short term. The National Bank expects that annual inflation will amount to 5-7 percent by the end of 2024.
The National Bank of the Kyrgyz Republic continues to monitor economic conditions and, if necessary, may make adjustments to the monetary policy. The next meeting of the Board on the discount rate issue is scheduled for October 28.
