National Bank of Kyrgyzstan raises discount rate to 10%
BISHKEK. Oct 28 (Interfax) - The board of the National Bank of Kyrgyzstan has raised the discount (key) rate by 75 basis points to 10%, with the decision taking effect on Tuesday, according to the regulator's official website.
Inflation in Kyrgyzstan amounts to 6.2% since the beginning of 2025 and 8.4% in annual terms, the National Bank said. There has been a shift in the inflationary influence within the consumer price index structure from food towards non-food goods and services, primarily due to changes in the balance of risks in the external environment.
"The current inflation level is being impacted by limited energy supply on external markets and the rising cost of expenses in certain segments of the services sector, combined with persistently robust consumer demand," the bank said.
The country maintains high economic growth rates, the bank said. Real GDP growth in January-September was 10%. There is an increase in investments in fixed capital and growth in the construction sector. Consumer demand remains elevated as a result of increased household incomes and growth in remittance inflows into the country.
"The country's banking sector remains resilient to external risks and possesses a high level of liquidity in the national currency, creating conditions for expanding lending to the economy. The external environment is characterized by high uncertainty amid elevated geopolitical risks associated with changes in global trade rules and the fragmentation of the global economy, which leads to volatility in global prices for energy and food, and this in turn impacts domestic prices," it said.
The regulator assesses the impact of elevated consumer demand and the planned revision of tariff policy on the country's inflation level as moderate. At the same time, the National Bank believes that external circumstances create instability for the inflation trajectory in the near term and require a more cautious approach in conducting monetary policy.
"Under these conditions, taking into account the assessment of external and internal inflation factors, as well as the forward-looking monetary policy of the National Bank, the discount rate has been increased to 10%. The decision taken will contribute to the formation of price dynamics within the target range of 5%-7% in the medium term. The National Bank adheres to a balanced approach in conducting monetary policy and continues to assess the prevailing external and internal inflation factors. Should any risks to price stability arise, the National Bank does not rule out the possibility of making adjustments to the monetary policy being conducted," the National Bank said regarding its decision.
The next scheduled meeting of the National Bank's board on the level of the discount rate will be held on November 24, 2025.
From May 2024, the rate in Kyrgyzstan was 9% per annum, when it was lowered from 11% per annum. In July 2025, the National Bank raised it to 9.25%, explaining its decision in terms of pro-inflationary external factors and volatility in global food and commodity prices.
