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IMF shares forecast on inflation rate in Kyrgyzstan

Kyrgyzstan Materials 5 December 2022 15:26 (UTC +04:00)
IMF shares forecast on inflation rate in Kyrgyzstan
Aygun Maherramova
Aygun Maherramova
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BAKU, Azerbaijan, December 5. Inflation in Kyrgyzstan is expected to remain elevated at about 15 percent this year, Trend reports citing the International Monetary Fund (IMF).

According to the IMF, in October 2022 inflation in Kyrgyzstan increased to 15.4 percent year-on-year, mainly due to high global food and fuel prices.

The IMF reports that inflation in Kyrgyzstan is projected to decline to about 10 percent only by end-2023 as food and energy prices moderate and remittances decline with the growth slowdown in Russia.

"High food and fuel prices, immigration from Russia and strong GDP and wage growth are likely to keep inflation pressures elevated in the coming months. The IMF mission recommends a restrictive monetary stance and tightening domestic liquidity until inflation is firmly on a downward trend," the IMF said.

Notably, the effectiveness of monetary policy can be strengthened by lifting the interest rate cap on auctions of National Bank of Kyrgyzstan notes, improving coordination between monetary and fiscal policies and liquidity management, and containing Government’s subsidized lending. All banks, public and private, should have equal access to such programs.

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