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National Bank of Kyrgyzstan keeps discount rate at 4.75 percent

The Board of the National Bank of Kyrgyzstan kept the size of the discount rate at the level of 4.75 percent. The website of the National Bank of the Kyrgyz Republic reported.

According to it, inflation in Kyrgyzstan continues to decline. In June 2018, its value in annual terms was 1 percent. The reduction of prices for food products remains the main factor of the low inflationary environment. Given the favorable situation on the domestic and foreign markets and the absence of shocks, inflation in the medium term will not exceed the target benchmark of monetary policy of 5-7 percent.

At the same time, economic growth slowed down. Real GDP in January-May 2018 grew by 0.7 percent.

The growth of the economy was ensured by private consumption due to the inflow of remittances and an increase in real wages.

«The banking system has sufficient liquidity. Soft monetary conditions contributed to a slight decrease in interest rates. Activity in the interbank market of credit resources has slightly decreased. Previously taken measures continue to influence the decline in market interest rates on loans and expansion of lending to the economy. The situation on the domestic foreign exchange market is stable,» the report said.

The next meeting of the Board of the National Bank on the discount rate issue will be held on August 27, 2018.