National Bank of Kyrgyzstan maintains its rate at 4.75%
The National Bank left its rate at 4.75%, Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov told at a press conference, Kabar reports..
He said that the inflation background in the Kyrgyz Republic remains stable, demonstrating the third quarter, consecutive low growth rates of the general price level.
“The annual growth rate in consumer prices in November was 0.2%. The formation of low inflation in the country is due to lower prices, whereas food products – due to sufficient supply of food products from both domestic and imported production. The growth rates of prices for non-food products also remain within moderate range,” he said.
Abdygulov said that the continuing negative GDP gap coupled with a stable external inflation background determine a low inflation rate in the current year.
“It is expected that by the end of this year inflation will remain within the previously announced estimates of the National Bank and will reach about 2%. In the absence of external and internal shocks, a gradual increase in economic activity in the country and the region will be a condition for the inflation reach the target indicator of 5-7% by mid-2019,” he added.
Abdygulov said that economic activity continues with the positive contribution of all sectors of the economy, with the exception of the industry and information and communication sectors. The head of the National Bank noted that Kumtor remains the main factor in GDP growth.
“In January-October 2018, real GDP increased by 2%, while the growth of the economy, excluding Kumtor data, was 2.6%. According to the National Bank in the medium term, it is assumed that foreign economic conditions, first of all, the level of economic activity in the countries-trading partners, largely determined by the degree of sanctions pressure on the Russian economy, will be the most significant factor in the development of the Kyrgyz economy,” Abdygulov said.