As of October 28, the decision comes into effect
On October 27, 2025, the Board of the National Bank of the Kyrgyz Republic decided to raise the key interest rate by 75 basis points, bringing it to 10 percent. This change will take effect on October 28, 2025.
According to the financial regulator, the inflation rate in Kyrgyzstan since the beginning of 2025 has been 6.2 percent, and on an annual basis — 8.4 percent.
“The structure of the consumer price index shows a shift in inflationary pressure from food products to non-food goods and services. This is largely caused by changes in the external economic environment. Restrictions on energy resource supplies in international markets and rising costs in certain service sectors, along with sustained consumer demand, are influencing the current level of inflation in the country,” the National Bank notes.
The economic growth of Kyrgyzstan remains high due to increased consumer and investment activity. In the first nine months of 2025, the real gross domestic product (GDP) grew by 10 percent. Investments in fixed assets have improved, which is associated with the expansion of domestic funding sources and has made a significant contribution to the development of the construction sector. The increase in household incomes, including the results of active fiscal policy and the growth of remittances to the country, remain key factors contributing to increased domestic demand,” the statement from the National Bank of the Kyrgyz Republic adds.
“External conditions are characterized by a high degree of uncertainty due to geopolitical risks related to changes in global trade rules and the fragmentation of the global economy. This, in turn, leads to volatility in global prices for energy resources and food, which affects domestic prices. Consumer demand and planned changes in tariff policy have a moderate impact on the level of inflation. Currently, external circumstances create instability in the inflation trajectory in Kyrgyzstan and require a more cautious approach to monetary policy,” the message emphasizes.
Taking into account the analysis of external and internal inflation factors, as well as a forward-looking monetary policy, the rate was raised to 10 percent. This decision is expected to contribute to the formation of price dynamics in the medium term within the target range of 5-7 percent,” the National Bank added.
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