In recent months, Kyrgyzstan has been facing growing inflationary pressure, as reported by economic experts. Specialists from the Eurasian Development Bank point to several factors contributing to this, including a 9.9% increase in real wages and a significant rise in consumer lending, which has reached 67.2%. These circumstances create high domestic demand for goods and services, which, in turn, leads to rising prices. As a result, the inflation rate in the country has exceeded the target range of 5–7%, reaching 9.6%.
In this situation, analysts consider the decision to raise the discount rate from 11% to 12% to be appropriate. Economist and financial expert Sergey Ponomarev noted that this step is part of the traditional approach to combating inflation.
According to him, in countries with developed market economies, there is also an increase in discount rates, as this is an effective tool for controlling price growth.
Ponomarev emphasized: “The decision of the National Bank is quite justified. Although the increase in the rate may slightly raise the credit burden, it nevertheless helps to cool consumer and business activity. We hope that this will lead to a slowdown in inflation and its return to the target range. It is important to use such a tool in a timely manner, and the economic situation confirms this.”
It should be noted that the decision to raise the discount rate by 100 basis points to 12% was made at the meeting of the National Bank of the Kyrgyz Republic on February 24.
