Published
05/26/2026, 10:40The National Bank of the Kyrgyz Republic has kept the base rate at 12%. The decision was taken on 25 May and comes into effect on 26 May 2026.
The regulator attributed the continuation of tight monetary policy to rising external inflationary risks and accelerating domestic price growth. Since the start of the year, inflation in Kyrgyzstan has stood at 4.7%. On an annualised basis, the figure has reached 10.9%.
Foodstuffs and services continue to be the main contributors to price rises. The National Bank attributes this to rising food and energy prices on global markets against a backdrop of geopolitical tensions in the Middle East. For Kyrgyzstan, as an import-dependent economy, this means direct pressure on domestic prices.
Domestic factors are also having an additional impact. These include increases in electricity and housing and utilities tariffs, rising prices in the hotel and restaurant sector following increased fiscalisation, as well as persistently high consumer demand.
At the same time, the country’s economy continues to grow at a rapid pace. According to the National Bank, Kyrgyzstan’s real GDP increased by 12.4% in January–April 2026. Growth was driven by the services sector, industry and construction, against a backdrop of infrastructure projects and increased investment.
Separately, the regulator noted the high level of excess liquidity in the banking sector. Banks’ excess funds are being actively withdrawn through National Bank instruments to limit additional inflationary pressure. Previously, the banking system’s excess liquidity exceeded 19 billion KGS.
The National Bank believes that maintaining tight monetary conditions should bring inflation back to the target range of 5–7% in the medium term. However, the balance of risks remains skewed towards external inflationary factors — primarily due to instability in global markets and potential disruptions in supply chains.
The next meeting of the National Bank’s Board on the key policy rate is scheduled for 27 July 2026.
