National Bank of Kyrgyzstan raises key interest rate to 11%
BISHKEK. Nov 25 (Interfax) - The National Bank of Kyrgyzstan has raised its key policy rate 100 basis points from 10% to 11% effective November 25, the regulator said on its website.
It said annual inflation was 8.9% in October, and consumer prices had gone up 7.3% since the beginning of 2025. Current price trends are driven by external economic conditions, which are still having a significant impact on domestic prices.
"In current inflation, the most significant price increases are being seen for non-food products, primarily due to higher prices for imported fuels and lubricants, electricity tariffs, domestic consumption and the secondary effect of these factors. Food price growth has been relatively moderate," the regulator said.
Economic activity remains strong. Real GDP grew 10% in January-October, driven by robust consumer demand and rising investment activity. The services sector (+4.5%), construction (+2%), and industry (+1.6%) again made the biggest contributions to GDP growth. High domestic demand is supported by rising real wages, incoming remittances and consumer lending growth. Capital investment continues to rise, driven mostly by domestic sources of financing, providing support to the construction sector.
"Current monetary conditions are designed to return inflation to its medium-term target of 5%-7%. The interbank benchmark interest rate (BIR) is near the lower bound of the National Bank's interest rate corridor, reflecting a high liquidity surplus in the banking sector. The domestic currency market remains stable: FX supply and demand remain balanced. Growth for the National Bank's international reserves ensures additional resilience to external shocks amid an uncertain external environment," the National Bank said.
"Energy price volatility in the region and rising global food prices, coupled with inflationary pressures seen in Kyrgyzstan's main trading partners, continue to weigh on prices for imported goods. These factors point to the likelihood of a pro-inflationary backdrop in the near term and necessitate an ongoing tightening of monetary conditions," it said.
The National Bank's next scheduled rate-setting meeting takes place on January 26, 2026.
The key rate has been 9% since May 2024, when it was lowered from 11%. The National Bank raised it to 9.25% in July 2025, citing inflationary external factors and price volatility in global food and commodity markets. The rate was hiked to 10% in October.
