On July 28, the Board of the National Bank of Kyrgyzstan decided to raise the discount rate by 25 basis points to 9.25 percent. The decision comes into effect today, July 29.
Inflation in the Kyrgyz Republic remains within moderate limits. Its rate since the beginning of 2025 was 4.6 percent, in annual terms — 8.7 percent. The current price dynamics are due to temporary and seasonal factors, including the effect of the low statistical base of the corresponding period last year.
In the inflation structure, the largest price increase was observed in the food group of goods due to the influence of seasonal and temporary factors, as well as against the background of relatively high inflation in the countries — trading partners of the Kyrgyz Republic. In the non-food part of inflation, the main contribution was made by the adjustment of electricity prices as part of the planned increase in tariffs.
The economic conditions in the republic have not undergone significant changes.
Kyrgyzstan maintains high economic activity, while domestic demand continues to expand amid rising household incomes. There is also an increase in fixed capital investment, both through private financing and through the fiscal channel. In January-June of this year, real GDP growth amounted to 11.7 percent (compared to the same period in 2024), which is mainly due to growth in the services, construction and industry sectors.
Monetary conditions are aimed at ensuring price stability in the country within the established target of 5-7 percent in the medium term. The monetary policy measures taken help maintain stability in the interbank money market. In general, the banking system maintains a high volume of liquidity in the national currency, under these conditions, the National Bank conducts monetary operations to ensure an equilibrium level of money supply in the economy.
The situation on the foreign exchange market is stable, while the exchange rate remains flexible in the context of market formation of the balance of supply and demand for foreign currency.
In 2025, the degree of uncertainty in the external economic environment has increased significantly against the backdrop of increased geopolitical factors and changes in global trade policy, which causes external inflationary factors and price volatility in global food and raw materials markets. In the regional context, relatively high inflation continues to persist in trading partner countries.
In these conditions, taking into account the analysis of inflation factors in the short and medium term, and also taking into account that the monetary policy of the National Bank is focused on the future, in order to maintain price stability in the country in the medium term, it seems appropriate today to increase the discount rate by 25 basis points, to 9.25 percent.
The National Bank of the Kyrgyz Republic adheres to a balanced approach in the course of monetary policy and will continue to assess the emerging external and internal inflation factors. In the event of any risks to price stability, the National Bank does not exclude the possibility of making adjustments to the monetary policy. The next scheduled meeting of the National Bank’s Board on the issue of the discount rate will be held on August 25.
