The National Bank of Kyrgyzstan has kept the discount rate at the 9% level

The Board of the National Bank of the Kyrgyz Republic decided to keep the discount rate unchanged - at the 9 per cent level. The decision came into force on 29 October 2024.

The National Bank notes that inflation in the country remains below the target of 5-7%. In October 2024, annual inflation was 4.6%, down from 7.3% in December 2023. The positive dynamics is explained by the effectiveness of previously adopted monetary policy measures. The growth rate of prices for food products was 2.4%, for non-food products - 4.1%, and for services - 8.4%.

The economy of Kyrgyzstan demonstrates high growth rates due to the expansion of investment and consumer demand. In January-September 2024, real GDP growth reached 8.4%. The main contribution to the economic activity comes from the service and construction. Domestic demand is supported by growth in lending, remittances and real wages.

The monetary sphere is stable. Short-term borrowing rates in the interbank market remain within the set by the National Bank corridor. The banking sector demonstrates stability with sufficient liquidity. Lending continues to grow, including in consumer lending, trade and agriculture. The currency market is relatively stable. The exchange rate is shaped by the market, and the National Bank carries out currency interventions to smooth out sharp fluctuations.

Despite the slowdown in inflation, in the short term, there are still pro-inflationary risks associated with the geopolitical situation and the global conjuncture of prices for food and raw materials. However, according to the National Bank's forecasts, annual inflation will remain within the 5-7% target range by the end of 2024. The next meeting of the Board of the National Bank on the discount rate will be held on 25 November 2024.