Discount rate of the National Bank unchanged due to low level of inflation

The National Bank of Kyrgyzstan doesn’t change the size of the discount rate for a year because of the low level of inflation. 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, Kyrgyzstan has a rather low level of inflation. If the year 2016 ended in deflation, that is, a fall in prices, in that year inflation keeps at the level of 3.3 percent.

We don’t see the advisability of further reducing the discount rate, it is already at a low level and corresponds to the current state of the economy. The size of the discount rate is aimed at stimulating the real sector of the economy.

Nurbek Zhenish

The deputy head of the National Bank of the Kyrgyz Republic said that the decisions of the regulator at the discount rate are directly reflected in the interest rate on loans for the final consumer. Now there is a tendency to lower interest rates.

In January-October, the volume of the commercial banks’ loan portfolio increased by 13.1 percent, while rates decreased from 17.3 to 16.3 percent.