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National Bank keeps discount rate unchanged - 4.75 percent

The Board of the National Bank decided to keep the size of the discount rate (policy rate) at the level of 4.75 percent. Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov told journalists today at a press conference.

According to him, inflation in Kyrgyzstan remains at a low level amid a decline in prices for food products due to their sufficient supply from the domestic and foreign markets. The annual inflation rate in September 2018 was 1.1 percent. It is expected that prices will increase by 4 percent by the end of 2018.

At the same time, positive trends continue in the monetary sector. The banking sector has sufficient liquidity in the national currency. The interbank credit market shows an increase in the activity of participants for the second consecutive month. There is an increase in lending to the economy and an increase in the deposit base of commercial banks.

«Since mid-August, an excess of demand for foreign currency over its supply has been registered in the domestic foreign exchange market. The National Bank conducted two currency interventions to smooth the sharp fluctuations in the exchange rate. In general, the domestic foreign exchange market remains stable,» said Tolkunbek Abdygulov.

The next meeting of the Board of the National Bank on discount rate issue will take place on November 26, 2018.