The Board of the National Bank decided to keep the discount rate at the level of 5 percent. The indicator remains unchanged from January 2017, Nurbek Zhenish, deputy chairman of the National Bank of the Kyrgyz Republic, said at a press conference today.
According to him, the actual inflation coincides with the expectations of the National Bank and is approaching the lower threshold of the target of monetary policy in 5-7 percent. On August 18, the annual inflation rate was 3.9 percent. The emerging growth of domestic and external demand is the main factor of its dynamics.
To maintain positive economic growth rates, the situation in the countries — major trading partners and the increase in remittances to $ 1.1 billion — have a big impact.
«The domestic foreign exchange market remains stable. Since the beginning of the year, the national currency has appreciated against the dollar by 0.9 percent. In the banking system, there is a sufficient level of free liquidity in the national currency,» Nurbek Zhenish said.
The next meeting of the Board of the National Bank on the issue of the discount rate will be held on September 25, 2017. The situation in the domestic and foreign markets will be studied, based on this, they will decide on the rate of the discount rate. At the same time, the National Bank notes that the measures taken to reduce the discount rate from 10 to 5 percent yield results. Since 2017, there has been a decrease in interest rates on loans for the end consumer, from an average of 27 to 16 percent.