The decision to raise the discount rate is related to the unstable external economic environment. On global food markets, there is a slowdown in price growth for key commodities; however, inflation in the countries that are Kyrgyzstan's main trading partners remains high. Given the significant dependence on imports, domestic prices remain under pressure from changes in external conditions.
The dynamics of prices in the country are formed in accordance with forecasts, but there is a lack of uniformity among the main components of the consumer basket. Food prices are rising moderately due to stabilization in certain product categories. At the same time, the services sector and non-food goods are showing accelerated price growth due to external factors and increased domestic demand.
The economy of Kyrgyzstan is demonstrating impressive growth, with real GDP increasing by 9.0% in January 2026. A recovery in activity is observed in the services sector and construction, while high investments in fixed capital contribute to the expansion of infrastructure projects.
The growth of real incomes of the population and an increase in consumer lending also support domestic demand, thereby creating an additional pro-inflationary effect.
Monetary conditions contribute to maintaining the purchasing power of the national currency and ensure price stability in the range of 5-7% in the medium term.
The interbank money market demonstrates stability, with the BIR rate at the lower bound of the National Bank's interest rate corridor, reflecting the balance of supply and demand for short-term resources. The currency market also remains stable, and interventions are conducted only to smooth out sharp fluctuations in the exchange rate.
The banking sector shows its resilience: the volume of deposits in 2025 increased by 46.2% to 865.9 billion soms, indicating trust in the banking system and an activation of the population's saving behavior. The loan portfolio of commercial banks grew by 48.8% and reached 507.0 billion soms, reflecting the activity of the real sector of the economy.
The future of inflation will depend on the balance of internal and external factors. In the context of increasing pro-inflationary risks, including due to rising fiscal expenditures and growing consumer demand, a tightening of monetary policy is necessary to slow down inflation. In this regard, the discount rate has been raised to 12.00%.
The National Bank continues to apply a balanced approach in monetary policy, carefully assessing external and internal factors that may affect inflation. If risks to price stability are identified, adjustments to monetary policy may be made.
The next meeting of the National Bank's Board, dedicated to the level of the discount rate, is scheduled for April 27, 2026, according to the National Bank's announcement.
The economy of Kyrgyzstan is demonstrating impressive growth, with real GDP increasing by 9.0% in January 2026. A recovery in activity is observed in the services sector and construction, while high investments in fixed capital contribute to the expansion of infrastructure projects.
The growth of real incomes of the population and an increase in consumer lending also support domestic demand, thereby creating an additional pro-inflationary effect.
Monetary conditions contribute to maintaining the purchasing power of the national currency and ensure price stability in the range of 5-7% in the medium term.
The interbank money market demonstrates stability, with the BIR rate at the lower bound of the National Bank's interest rate corridor, reflecting the balance of supply and demand for short-term resources. The currency market also remains stable, and interventions are conducted only to smooth out sharp fluctuations in the exchange rate.
The banking sector shows its resilience: the volume of deposits in 2025 increased by 46.2% to 865.9 billion soms, indicating trust in the banking system and an activation of the population's saving behavior. The loan portfolio of commercial banks grew by 48.8% and reached 507.0 billion soms, reflecting the activity of the real sector of the economy.
The future of inflation will depend on the balance of internal and external factors. In the context of increasing pro-inflationary risks, including due to rising fiscal expenditures and growing consumer demand, a tightening of monetary policy is necessary to slow down inflation. In this regard, the discount rate has been raised to 12.00%.
The National Bank continues to apply a balanced approach in monetary policy, carefully assessing external and internal factors that may affect inflation. If risks to price stability are identified, adjustments to monetary policy may be made.
The next meeting of the National Bank's Board, dedicated to the level of the discount rate, is scheduled for April 27, 2026, according to the National Bank's announcement.
