National Bank of Kyrgyzstan reduces discount rate by 2%
Baku, Azerbaijan, March 30
By Elena Kosolapova - Trend:
The National Bank of Kyrgyzstan has reduced the discount rate from 10 percent to eight percent since March 29, the bank said March 29.
"This decision will support the measures of stimulating the real sector of the economy to achieve the positive growth while maintaining inflation risks at a low level in 2016," a statement said.
The next meeting of the board of the National Bank of Kyrgyzstan is scheduled for May 30.
The amount of the discount rate will be discussed there.
According to the statement, Kyrgyzstan's real GDP decreased by 7.8 percent in January-February 2016. The industrial sector had a great impact on the decline in real GDP, mainly due to a decrease in the production at the Kumtor mine. Real GDP excluding Kumtor mine decreased by 0.1 percent.
The National Bank of Kyrgyzstan expects a moderate rise in prices in 2016. The value will approach a low level of inflation at a rate of five-seven percent by late 2016. This is envisaged in the main directions of the monetary policy for the medium term.
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