National Bank of Kyrgyzstan cuts refinancing rate from 11% to 9%

The Board of the National Bank of Kyrgyzstan has decided to lower the refinancing rate from 11 percent to 9 percent, Azernews reports.

According to the bank, inflation is continuing to decline in the country. In May 2024, the annual growth rate of consumer prices was 4.4 percent, compared to 7.3 percent in December 2023. It is noted that within the inflation structure, the growth rates of food prices are steadily decreasing, partly due to the gradual decline in global food prices.

Meanwhile, economic activity in Kyrgyzstan continues to show strong growth. From January through April 2024, the real GDP growth rate was 7.4 percent. The main contributions to economic growth came from the construction and service sectors. A significant expansion of investment activity in fixed capital has driven growth in the construction sector. In the service sector, growth is observed primarily in retail and wholesale trade.

The interbank money market remains stable, with the banking system maintaining a high level of excess liquidity in the national currency, creating conditions for further expansion of credit to the real sector of the economy. Flexibility in the exchange rate persists in the domestic foreign exchange market.