An important aspect of the economic situation in the Kyrgyz Republic is the high investment activity, supported by an increase in fixed capital investments and an expansion of budget financing. Consumer demand is also sustained due to the growth of real incomes, an influx of remittances, and active lending.
As of January 16, 2026, inflation was 9.4% year-on-year, which corresponds to the level of December 2025. Current price changes are within the expectations of the National Bank, and there is a slowdown in the growth of food prices. At the same time, prices for non-food goods and services remain high due to secondary effects of external factors. Additionally, revisions in tariff policy and rising domestic demand continue to impact inflation.
The National Bank aims to bring inflation back to the target range of 5-7% in the medium term. In this regard, monetary policy remains relatively tight. Tactical measures are aimed at limiting inflationary factors, and in the context of high liquidity in the banking sector, sterilization operations are conducted to regulate the money supply in the economy. Under these conditions, the interbank benchmark interest rate BIR is formed close to the lower boundary of the National Bank's interest corridor, while the domestic currency market remains stable.
However, inflation continues to be influenced by external factors. Global food and commodity markets remain highly volatile, and geopolitical instability maintains inflationary pressure in countries that are key trading partners of Kyrgyzstan, which also affects import prices.
Domestic inflation processes are largely related to non-monetary factors, such as planned changes in regulated tariffs and high domestic demand. These circumstances require maintaining the current monetary policy conditions until sustainable prerequisites for reducing inflation emerge. In this regard, the interest rate remains at 11.00%.
The National Bank adheres to a balanced approach to monetary policy and continues to analyze both internal and external factors affecting inflation. In the event of risks to price stability, the bank does not rule out the possibility of adjusting its monetary policy, according to the National Bank's statement.
The National Bank aims to bring inflation back to the target range of 5-7% in the medium term. In this regard, monetary policy remains relatively tight. Tactical measures are aimed at limiting inflationary factors, and in the context of high liquidity in the banking sector, sterilization operations are conducted to regulate the money supply in the economy. Under these conditions, the interbank benchmark interest rate BIR is formed close to the lower boundary of the National Bank's interest corridor, while the domestic currency market remains stable.
However, inflation continues to be influenced by external factors. Global food and commodity markets remain highly volatile, and geopolitical instability maintains inflationary pressure in countries that are key trading partners of Kyrgyzstan, which also affects import prices.
Domestic inflation processes are largely related to non-monetary factors, such as planned changes in regulated tariffs and high domestic demand. These circumstances require maintaining the current monetary policy conditions until sustainable prerequisites for reducing inflation emerge. In this regard, the interest rate remains at 11.00%.
The National Bank adheres to a balanced approach to monetary policy and continues to analyze both internal and external factors affecting inflation. In the event of risks to price stability, the bank does not rule out the possibility of adjusting its monetary policy, according to the National Bank's statement.
The next meeting of the Board of the National Bank regarding the interest rate is scheduled for February 23, 2026.
