BISHKEK, Oct. 28 (Xinhua) -- The Board of the National Bank of Kyrgyzstan has raised its key interest rate by 75 basis points to 10 percent, effective from Tuesday.
According to a statement on the bank's website, the decision aims to curb inflationary pressures and ensure price stability in the medium term. Since the beginning of 2025, inflation in Kyrgyzstan has reached 6.2 percent, with a year-on-year rate of 8.4 percent.
The bank noted that rising costs in the service sector, limited energy supply in foreign markets, and sustained consumer demand continue to influence price dynamics.
The statement said that investment in fixed assets has increased, mainly due to the expansion of domestic financing sources, contributing significantly to growth in the construction sector. Meanwhile, higher household incomes, supported by active fiscal policy and growing remittance inflows, remain key drivers of domestic demand.
The bank added that monetary conditions continue to support macroeconomic stability. The domestic foreign exchange market remains stable, and the banking sector is resilient to external risks while maintaining high liquidity in the national currency, creating favorable conditions for lending.
Taking into account internal and external factors affecting inflation, as well as the bank's forward-looking monetary policy stance, the key rate was raised to 10 percent. The decision is expected to guide inflation toward the target range of 5 to 7 percent in the medium term, the bank added.
