Discount rate of National Bank of Kyrgyzstan not to change before end of year

The discount rate of the National Bank of Kyrgyzstan until the end of 2017 will remain unchanged — 5 percent. This was announced today at a press conference by the Deputy Chairman of the National Bank of the Kyrgyz Republic Nurbek Zhenish.

According to him, inflation in Kyrgyzstan remains moderate. Its annual value as of November 17 was 3.3 percent. This corresponds to the expectations of the National Bank. The dynamics of inflation is largely due to relatively low prices for imported food products and a restrained demand for non-food products.

The positive growth rates of the economy in Kyrgyzstan remains. The indicators are supported by steady remittance receipts. According to preliminary data, in January-October net inflow of remittances increased by 25.6 percent.

Nurbek Zhenish

The National Bank believes that the current monetary conditions create the prerequisites for supporting measures to stimulate the real sector of the economy. Market rates on loans in the banking sector continue to decline in both national and foreign currencies. At the same time, there is an increase in lending to the economy. Short-term rates in national currency continue to fluctuate within the percentage corridor set by the National Bank.

«Folding external and internal economic conditions will contribute to bringing the value of inflation closer to the medium-term target, set at 5-7 percent. Taking into account the existing risks in the external economic environment, maintaining the discount rate of the National Bank will help to support measures to stimulate the economy. In the absence of any additional external and internal inflation shocks, the National Bank allows the possibility of maintaining the current direction of monetary policy until the end of the year,» Nurbek Zhenish concluded.

The next meeting of the Board of the National Bank on the issue of the discount rate will be held on December 25.