The National Bank of Kyrgyzstan has kept its key interest rate at 12 per cent

On 27 July, the Board of the National Bank of Kyrgyzstan decided to keep the discount (key) rate at 12 per cent. The decision comes into force on 28 July 2026.

The regulator noted that the decision was taken against a backdrop of persistent external inflationary risks. Among the main factors cited were fluctuations in global food prices, risks of disruptions to oil product supplies through the Strait of Hormuz, and a possible rise in global oil prices, which affects the cost of imported goods.

According to the National Bank, inflation in Kyrgyzstan has stood at 6.5 per cent since the start of 2026, and has reached 11.3 per cent on an annualised basis. The sharpest price rises have been recorded for foodstuffs and fuels and lubricants. In addition, the cost of services continues to rise, which the regulator attributes to reforms aimed at bringing tax procedures in the hotel and restaurant sector into line with fiscal regulations.

At the same time, Kyrgyzstan’s economy continues to demonstrate strong growth rates. According to preliminary data, real GDP increased by 11.9 per cent, driven by growth in domestic demand, rising real household incomes and high levels of investment activity, particularly in the construction sector.

The National Bank noted that since the start of the year it has tightened monetary policy to curb inflationary pressures, and since May has stepped up measures to regulate the money supply in the economy. At present, the money and foreign exchange markets are functioning stably, and excess liquidity in the banking sector is being managed through the National Bank’s instruments.

The regulator expects that the current policy will help to boost household savings, maintain the purchasing power of the national currency and bring inflation back within the target range of 5–7 per cent in the medium term.

The next meeting of the National Bank’s Board to discuss the policy rate will take place on 24 August 2026.