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National Bank of Kyrgyzstan lowers discount rate for 1st time over 18 months

The National Bank of Kyrgyzstan lowered the discount rate to 4.75 percent. The Chairman of the National Bank of Kyrgyzstan Tolkunbek Abdygulov told today at a press conference.

According to him, the day before, the meeting of the Board of the National Bank took place. It was decided to lower the discount rate for the first time since December 2016. This is due to the economic situation in the republic.

«Inflation rate remains low in Kyrgyzstan. As of May 18, its annual value was 1.6 percent. The reduction in prices occurs in the food group of goods, which is due to the favorable situation in the international food markets. Restoration of demand along with stable prices allows to expect the inflation rate in the medium-term period within the targets of the monetary policy — 5-7 percent,» said Tolkunbek Abdygulov.

The National Bank is sure that the lowering of the discount rate will continue to support measures to stimulate the real sector of the economy. The National Bank intends to adhere to the current monetary policy provided that there are no external shocks.

The next meeting of the Board of the National Bank on the size of the discount rate will take place on June 25.