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National Bank of Kyrgyzstan keeps 5 percent discount rate

The day before, management of the National Bank of Kyrgyzstan preserved the size of the discount rate at the level of five percent. Chairman of the National Bank Tolkunbek Abdygulov announced today at a press conference.

According to him, inflation in Kyrgyzstan continues its moderate growth within the expected values. The positive dynamics of prices for food products, together with the increase in excise taxes on tobacco products, contributed to the formation of the current inflation.

As of March 17, inflation in annual terms amounted to 2.6 percent.

«Economic activity in the country is supported by the gradual restoration of domestic consumption. Positive trends in the development of production in the main sectors of the economy retained," Tolkunbek Abdygulov said.

The National Bank head noted that the previously adopted measures on easing monetary conditions contributed to the reduction of short-term interest rates in the national currency. This creates conditions for maintaining the real sector of the economy. Now the rates fluctuate within the corridor established by the National Bank.

According to the forecasts of the National Bank, moderate inflation is expected in the near future, the value of which will approach the lower boundary of the target 5–7 percent.

In these conditions and in the absence of external and internal inflationary risks, preservation of the discount rate at five percent will help to support the growth rates of the economy, the NB head noted.

The next meeting of the National Bank on the discount rate will be held on May 29.