The Board of the National Bank of Kyrgyzstan has decided to keep the discount rate at 9 percent. The Chairman of the National Bank Melis Turgunbaev reported.
The decision takes effect today, February 25, 2025.
External factors and inflation
The National Bank noted that external factors — both in the global economy and the region — remain the main drivers of price changes in Kyrgyzstan. Global food prices are rising, and international financial and commodity markets remain volatile due to geopolitical factors. Inflation remains high in Kyrgyzstan’s trading partner countries.
Economic activity in Kyrgyzstan
Economic activity in Kyrgyzstan continues to grow, primarily driven by the services and construction sectors. In January 2025, real GDP grew by 10.6 percent compared to January 2024.
Domestic demand is supported by rising household incomes, an influx of remittances, and increased consumer lending.
Inflation in Kyrgyzstan remains moderate — 1.5 percent since the beginning of the year and 6.9 percent year-on-year. Growth of prices for non-food goods is slowing down, while food and service price dynamics remain moderate.
Monetary conditions and banking sector
Monetary conditions support the stability of the interbank money and foreign exchange markets. Lending to the real sector of the economy continues.
The loan portfolio of commercial banks grew by 32.2 percent (340.7 billion soms) in 2024.
The bank’s interest rate policy encourages people to keep their money in the banking system. The total deposit base increased by 37.3 percent (592.4 billion soms) in 2024.
Commercial banks have excess liquidity, which is managed through the monetary policy tools of the National Bank.
Forecast and future actions
External economic conditions remain uncertain. The impact of domestic factors (such as tariff policy revisions and domestic demand) is considered moderate. The decision to keep the rate at 9 percent is aimed at keeping inflation within the target range of 5–7 percent.
The National Bank will continue to assess economic conditions and maintain a balanced approach to monetary policy. If risks to price stability arise, it does not rule out possible adjustments.
The next scheduled meeting of the Board of the National Bank on the discount rate will take place on April 28, 2025.
Note of 24.kg news agency
The discount rate is the interest rate at which the country’s central bank lends to commercial banks. The higher the bank’s key rate, the higher the interest rate that commercial banks then charge for the loan they provide to their clients and vice versa.
