National Bank of Kyrgyzstan retains refinancing rate at 11% pa
BISHKEK. Jan 27 (Interfax) - The management board of the National Bank of Kyrgyzstan has decided to retain the refinancing rate, or key rate, at 11% per annum, according to the regulator's website.
The Central Banks said that the country's economy maintains high growth rates, with real GDP having grown 11.1% in 2025. The main growth drivers are the construction and services sectors. Investment activity remains elevated amid increased investment in fixed assets, largely driven by expanded budget financing. Rising real incomes, net remittances, and active consumer lending support consumer demand.
"Inflation in the Kyrgyz Republic was 9.4% year-on-year as on January 16, 2026, versus 9.4% as of December 2025. Current price trends are in line with the National Bank's expectations, demonstrating a slight slowdown in the growth rate of the food component of inflation, though prices remain elevated in the non-food goods and services sector owing to the secondary effects of external factors. The annual tariff policy review and increased domestic demand also continue to contribute to inflation dynamics," the regulator said.
The National Bank's main monetary policy priority remains ensuring inflation returns to the 5%-7% target over the medium term. Therefore, current monetary conditions remain relatively tight. Given the continued high level of liquidity in the banking sector, the National Bank is actively conducting sterilization operations, thereby regulating the volume of money in the economy. Under these conditions, the interbank benchmark interest rate (BIR) is set near the lower boundary of the National Bank's interest rate corridor. The domestic foreign exchange market remains stable.
"The inflation trajectory remains vulnerable to external factors. Global food and raw materials markets remain highly volatile, while geopolitical instability is leading to persistent inflation in many countries, including Kyrgyzstan's main trading partners, which in turn affects imported prices. In the domestic economy, inflationary processes are largely driven by non-monetary factors, including the planned adjustment of regulated tariffs and increased domestic demand. These factors necessitate maintaining current monetary conditions until sustainable ones for a slowdown in inflation are established. In this regard, the National Bank's key interest rate has been maintained at 11% per annum," the National Bank explains.
The Central Bank continues to assess emerging external and internal inflation factors. Should any risks to price stability arise, the National Bank does not rule out the possibility of adjusting monetary policy.
The next scheduled meeting of the National Bank's management board to discuss the key interest rate is on February 23.
The 11% pa rate has been in effect since November 25, 2025, when the regulator hiked it from 10% pa.
