National Bank of Kyrgyz Republic Maintains 13% Discount Rate for Economic Stability
Kyrgyzstan is set to uphold the decision of the National Bank of the Kyrgyz Republic to keep the discount rate at 13%, effective from November 28, TuraNews.kz reports.
Ilyichbek Sultankulov, Deputy Head of the Communications and International Cooperation Department at NBKR, conveyed in a press conference that the monetary policy measures implemented by the National Bank have played a pivotal role in steering inflation downward. The annual inflation rate is on a gradual descent, standing at 8% in November. This reflects a substantial decrease of 6.7 percentage points compared to the beginning of 2023.
A noteworthy aspect is the consistent deceleration observed in the food group’s inflation, which, factoring in temporary measures for state-regulated price goods, has dropped from 15.8% at the beginning of 2023 to 3.9% in November 2023.
Meanwhile, prices for non-food goods and services have remained stable, underscoring the impact of tariff policy measures and the heightened domestic demand observed.
Kyrgyz Republic’s economy is exhibiting positive growth dynamics, with real GDP expanding by 4.5% in January-October 2023. Excluding Kumtor, this growth reaches 6.5%, primarily fueled by robust activity in the services and manufacturing sectors. The surge in domestic consumption is attributed to the continuous uptick in consumer lending and increasing real wages.
The National Bank underscores that its monetary policy measures are instrumental in mitigating the adverse effects of both external and internal factors on inflation processes within the country. Considering various factors, including inflation expectations and stable core inflation dynamics, maintaining the discount rate at 13% aligns with the goal of achieving target inflation levels of 5-7% in the medium term.
Constant monitoring of the economic landscape, both external and domestic, remains a priority for the National Bank. In the face of any emerging risks, the financial regulator does not rule out the possibility of implementing additional adjustments to the ongoing monetary policy.
