National Bank of Kyrgyzstan holds policy rate at 12%

BISHKEK. Oct 27 (Interfax) - The National Bank of Kyrgyzstan has decided to hold its key policy rate at 12% per annum, the regulator said on its website.

Consumer price growth has been subdued over the past month: annual inflation fell to 10.8% as of October 16, from 12.2% in September. Cumulative inflation since the beginning of the year was 8.5%.

"Inflation is still influenced by external factors resulting from changes in the price environment in global food and commodity markets amid the ongoing conflict in the Middle East. The current slowdown in inflation has been facilitated by the tight monetary conditions being maintained by the National Bank, as well as the government's anti-inflationary measures to saturate the domestic market with essential goods," the National Bank said.

GDP grew 10.8% in the first nine months of 2026, driven by high investment activity, primarily in construction, as well as expanding domestic consumption as real incomes grow. Tourism and the hosting of major international events in the country are additional growth factors.

The regulator's monetary policy measures are designed to limit the monetary factor in inflation. Monetary conditions in the economy remain tight, mitigating external shocks on price trends in the country and supporting the national currency's purchasing power.

"The National Bank continues to regulate the money supply in the economy through monetary instruments. Short-term money market interest rates, including the interbank market rate (BIR), are within the established interest rate corridor near the National Bank's policy rate. The currency market remains stable," the regulator said.

But ongoing geopolitical tensions in the world are reflected in price volatility in global energy and food markets and continue to cause restrictions in the international logistics of goods. In these circumstances, and given prevailing external inflationary factors globally and regionally, the decision was taken to hold the policy rate at 12% in order to achieve the national inflation target of 5%-7% in the medium term.

"The National Bank maintains a balanced monetary policy approach and continues to assess emerging external and domestic inflation factors. If any risks to price stability arise, the National Bank does not rule out the possibility of adjusting monetary policy," the regulator said.

The regulator's next rate-setting meeting is scheduled for November 30.

The key policy rate had been 9% per annum since May 2024, when it was lowered from 11% per annum. The rate was hiked to 9.25% in July 2025 amid inflationary external factors and price volatility in global food and commodity markets, then to 10% in October and to 11% in November 2025 and to 12% in February 2026.