BISHKEK, May 28 (NNN-KNA) – The Board of the National Bank of Kyrgyzstan, decided to keep the key rate at nine percent, the bank said in its statement, yesterday.
Taking into account the volatility of prices in the global food and raw materials markets, as well as, the impact on the inflation rate of changes in electricity tariffs, and increased domestic demand, the National Bank kept the key rate at nine percent, it said.
The external environment is characterised by continued uncertainty in the global financial and commodity markets, due to changes in the trade policies of the world’s leading countries, and geopolitical factors, which creates certain risks for countries with an emerging market, and an open economy. These external factors maintain uncertainty, regarding the prospects for Kyrgyzstan’s economic development, due to the peculiarities of the structure of the country’s economy, the report said.
Price dynamics in Kyrgyzstan remain within moderate limits. Consumer prices have increased by 2.9 percent, since the beginning of the year, while the annual inflation rate was 7.7 percent.
The interbank money market remains active. The situation in the domestic foreign exchange market remains relatively stable, while the exchange rate flexibility is maintained, as a result of the market formation of demand and supply of foreign currency.
The country’s banking sector remains stable and highly liquid. There is an increase in lending to the economy by 15.6 percent in Jan-Apr 2025, mainly loans issued for consumer purposes, financing the trade and agricultural sectors.
An assessment of the trends in external and internal inflation factors indicates the formation of an annual inflation indicator by the end of this year, within the medium-term target indicator of 5-7 percent, the report said.– NNN-KNA
