On the reasons for the rate increase and current prices
The National Bank noted that "the external economic situation remains diverse and is characterized by a high degree of uncertainty." It is noteworthy that "in global food markets, the pace of price growth for key goods is slowing; however, the level of inflation in the countries that are Kyrgyzstan's main trading partners continues to remain high," the institution added.
Reference information from 24.kg
The discount rate serves as a key instrument of the central bank's monetary policy, determining the cost of short-term borrowing for commercial banks. This, in turn, affects the overall credit conditions for businesses and the population.
Given the significant share of imports in the consumer basket, domestic prices remain influenced by external factors. The prospects for price dynamics depend on the stability of global supply chains and trade flows, which face risks in the context of geopolitical tensions and fragmentation of the global economy. Therefore, a cautious approach to monetary policy is required to maintain price stability in the country," the National Bank explained.
According to the NB KR, inflation in Kyrgyzstan as of February 13, 2026, was 1.8 percent (year-on-year — 9.6 percent).
NB KR
The National Bank also emphasized that "overall, price dynamics correspond to expected trends, although there are differences in the main components of the consumer basket. Prices for food products are rising moderately due to the stabilization of prices for some goods. At the same time, the services sector and non-food goods are facing rising prices under the influence of external factors and increased domestic demand," the NB KR stated.
On economic growth and population income
As reported in the National Bank's report, "the country's economy is demonstrating high growth rates." In January 2026, real GDP increased by 9%. Increased economic activity is still observed in the services sector and construction. Investments in fixed assets remain at a high level, supporting the development of infrastructure projects," the NB KR noted.
The growth of real incomes of the population and the expansion of consumer lending contribute to an increase in domestic demand, creating an additional inflationary impulse.
NB KR
"Monetary policy conditions continue to support the purchasing power of the national currency and create opportunities for ensuring price stability within the target range of 5-7% in the medium term. The interbank money market is functioning stably, and the BIR rate is at the lower boundary of the National Bank's interest rate corridor, reflecting the balance of supply and demand for short-term resources in conditions of excess liquidity in the banking system," the NB KR added.
On the currency market and the state of the banking system
The domestic currency market shows stability. The National Bank noted that currency interventions are conducted only to smooth out sharp fluctuations in the exchange rate.
"The banking sector demonstrates resilience. In 2025, the volume of the deposit base increased by 46.2% and amounted to 865.9 billion soms, indicating trust in the banking system and an increase in the saving behavior of the population. The loan portfolio of commercial banks also grew by 48.8% and reached 507 billion soms, reflecting the activity of the real sector of the economy," the NB KR emphasized.
On inflation
"The medium-term trajectory of inflation will depend on the balance of internal and external factors. Considering the inflationary risks associated with the expansion of fiscal stimulus, the widening GDP gap, and the growth of consumer demand, it is necessary to tighten monetary conditions to create sustainable prerequisites for slowing inflation. In this regard, the National Bank's discount rate was increased to 12%," the NB KR explained.
"The National Bank adheres to a balanced approach to conducting monetary policy and continues to monitor the emerging factors affecting inflation. In the event of risks to price stability, the regulator does not rule out the possibility of adjusting its monetary policy," the National Bank added.
- The next meeting regarding the discount rate will take place on April 27, 2026.
