Kozubekov emphasized that the money supply is a key factor determining the level of inflation. The National Bank has a wide range of tools to regulate this supply, including overnight deposits and various operations.
“By using these tools, we can effectively manage the volume of the money supply. As a result, the monetary component of inflation, driven by the supply of money, remains at a moderate level. If we exclude volatile goods and those affected by non-monetary factors from the consumer price index, core inflation fluctuates within 5-7%, which corresponds to our target range. Thus, we manage the money supply, minimizing its impact on inflation,” he noted.
However, Kozubekov added that, to date, inflation in Kyrgyzstan is largely driven by non-monetary factors related to supply.
“We are almost entirely dependent on imports, especially regarding rubber technical materials. The influence of monetary factors on these prices is minimal. The rise in prices for such goods inevitably reflects in our CPI basket. Additionally, a number of food products are also imported, and their prices, primarily formed in external markets, are also increasing,” explained Azat Kozubekov.
