On November 24, the Board of the National Bank of the Kyrgyz Republic decided to raise the discount rate from 10 to 11 percent. The decision comes into effect on November 25, the bank says.
The National Bank noted that inflation in the country has reached 7.3 percent since the beginning of 2025, and 8.9 percent in annual terms.
The discount rate is a key instrument of the central bank’s monetary policy, determining the cost of short-term borrowing for commercial banks. It influences the overall cost of credit in the economy and lending conditions for businesses and households.
Current price dynamics in the country are driven by external economic conditions, which remain significantly influential on domestic prices. Global food prices continue to rise, and inflation in the region remains elevated. This is reflected in the cost of imported goods, the National Bank emphasized.
«In the current inflation structure, the most significant price increases are observed for non-food products, primarily due to the rising cost of imported fuels and lubricants, higher electricity tariffs, increased domestic consumption, and the secondary effects of these factors. Food prices are showing relatively moderate growth dynamics,» the bank reported.
Economic activity in Kyrgyzstan remains strong. From January to October 2025, real GDP grew by 10 percent, driven by robust consumer demand and rising investment activity. The main contributors to GDP growth were the services sector (+4.5 percent), construction (+2 percent), and industry (+1.6 percent).
«Strong domestic demand is supported by rising real wages, the influx of remittances into the country, and increased consumer lending. Investments in fixed assets continue to grow, primarily due to domestic sources of financing, providing support to the construction sector,» the National Bank noted.
According to it, current monetary conditions are aimed at returning inflation to its medium-term target of 5-7 percent.
«The interbank benchmark interest rate (BIR) is set near the lower limit of the National Bank’s interest rate corridor, reflecting a high liquidity surplus in the banking sector. The domestic foreign exchange market remains stable: the supply and demand for foreign currency is balanced. The increase in the National Bank of the Kyrgyz Republic’s international reserves provides additional resilience to external shocks in the face of external uncertainty,» the bank emphasized.
The banking sector remains stable and has a high level of liquidity, providing sufficient potential for lending to the economy.
The National Bank
It is noted that, in the first nine months of this year, the volume of banks’ loan portfolio increased by 35.2 percent, and the deposit base by 35.7 percent.
«The growth of deposits in national currency reflects an increase in real incomes of the population and the strengthening of savings behavior among citizens in the context of tightening monetary conditions. Overall, the banking sector has demonstrated a gradual decline in the dollarization of both deposits to 35 percent (-7.9 percent since the beginning of the year) and loans to 17.8 percent (-2.3 percent since the beginning of the year),» the statement reads.
According to the National Bank, volatility in energy prices in the region and rising global food prices, along with inflationary pressures observed in Kyrgyzstan’s main trading partner countries, continue to exert pressure on imported goods.
«This indicates the likelihood of a pro-inflationary backdrop prevailing in the near future and necessitates the ongoing tightening of monetary conditions,» the National Bank of the Kyrgyz Republic stated.
Domestic inflation factors remain relatively moderate and manageable. Under these circumstances, the National Bank’s discount rate has been raised to 11 percent. The central bank believes this decision will contribute to price dynamics in the medium term within the target range of 5-7 percent.
The National Bank maintains a balanced approach to monetary policy and continues to assess emerging external and internal inflation factors. Should any risks to price stability arise, it does not rule out the possibility of adjusting its monetary policy.
- The next meeting of the Board of the National Bank of the Kyrgyz Republic to discuss the discount rate will be held on January 26, 2026.
