12:40, 24 февраля 2026, Bishkek - 24.kg news agency , Aibek SULTANOV
The Board of the National Bank of the Kyrgyz Republic raised the discount rate by 1 percent to 12 percent. The decision took effect today, February 24. The press service of the bank reported.
Prices and reasons for the rate increase
It was noted that «the external economic environment remains uneven and characterized by increased uncertainty.» «Global food markets are seeing a gradual slowdown in price growth for key commodities, but inflation in the Kyrgyz Republic’s main trading partners remains elevated,» the National Bank noted.
Note of 24.kg news agency
The discount rate is a key instrument of the country’s central bank’s monetary policy, determining the cost of short-term borrowing for commercial banks. It influences the overall cost of credit in the economy and lending conditions for businesses and individuals.
«Given the significant share of imports in the consumer basket, domestic prices remain sensitive to changes in the external environment. The outlook for future price dynamics largely depends on the stability of global supply chains and trade flows, which remain vulnerable amid geopolitical tensions and global economic fragmentation. These conditions require maintaining a balanced approach to monetary policy to ensure price stability in the country,» the National Bank explained in its decision to raise the discount rate.
Inflation in the Kyrgyz Republic since the beginning of 2026 as of February 13 was 1.8 percent (9.6 percent in annual terms).
National Bank of the Kyrgyz Republic
«Price dynamics are generally within the expected trajectory, with uneven dynamics across the main components of the consumer basket. Food prices are rising moderately due to the stabilization of prices for individual products. However, elevated price dynamics persist in the services and non-food sectors, both as a result of secondary effects from external conditions and as a result of strengthening domestic demand factors,» the National Bank of the Kyrgyz Republic stated.
Economy and population income
According to the National Bank, «the economy maintains high growth rates.» «In January 2026, the country’s real GDP grew by 9 percent. Acceleration of economic activity, as previously observed, was observed in the services and construction sectors. Investment in fixed assets remains high, supporting the expansion of infrastructure projects,» the National Bank of the Kyrgyz Republic noted.
Growth in real incomes and expansion of consumer lending support domestic demand. These factors are creating an additional inflationary impetus.
National Bank of the Kyrgyz Republic
«Monetary conditions continue to support the purchasing power of the national currency and create conditions for ensuring price stability within the target value of 5-7 percent in the medium term. The interbank money market is functioning stably, with the BIR rate set near the lower limit of the National Bank’s interest rate collar, reflecting the balance of supply and demand for short-term money market resources amid excess liquidity in the banking system,» the National Bank of the Kyrgyz Republic noted.
Foreign exchange market and banks
The domestic foreign exchange market remains stable. Foreign exchange interventions are conducted solely to smooth out sharp exchange rate fluctuations, the National Bank noted.
«The banking sector is demonstrating resilience. Its deposit base grew by 46.2 percent in 2025 to 865.9 billion soms. This reflects confidence in the banking system and increased savings behavior among the population. The loan portfolio of commercial banks increased by 48.8 percent in 2025 to 507 billion soms, reflecting the activity of the real sector of the economy,» the National Bank noted.
Inflation
«The medium-term trajectory of inflation will be determined by the balance of external and internal conditions. Given the emergence of pro-inflationary factors in the economy, including as a result of the expansion of the positive fiscal impulse, the widening GDP gap, and rising consumer demand, a tightening of monetary conditions is now necessary to create sustainable conditions for slowing inflation. In this regard, the National Bank’s discount rate has been increased to 12 percent,» the National Bank of the Kyrgyz Republic emphasized.
«The National Bank maintains a balanced approach in its monetary policy and continues to assess emerging external and internal inflation factors. Should any risks to price stability arise, the regulator does not rule out the possibility of adjusting its monetary policy,» the National Bank noted.