Kyrgyzstan’s National Bank keeps interest rate unchanged

Kyrgyzstan Materials 28 February 2023 10:19 (UTC +04:00)
Alyona Pavlenko
Alyona Pavlenko
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BAKU, Azerbaijan, February 28. The Board of the National Bank of Kyrgyzstan has agreed to keep the interest rate unchanged at 13 percent, Trend reports with reference to the National Bank of Kyrgyzstan.

According to the bank, inflation in Kyrgyzstan remains moderate. As of February 17, consumer prices in the country increased by 2.8 percent and the annual inflation amounted to 15.9 percent.

The bank connected the recent inflation with the seasonal increase in prices for food and vegetable, as well as with the influence of the secondary effects of pre-existing inflation factors. Among these factors are: volatile prices in world commodity markets and increases in some tariffs.

The bank noted that Kyrgyzstan has recently become more economically active and domestic demand is recovering. The growth rate of the real GDP in January 2023 amounted to 4.8 percent. The largest increase in production was registered in the industrial sector and agricultural sector.

“The financial and banking system remains stable. The banking system has sufficient liquidity in the national currency,” the bank noted.

However, the main predisposing factor of Kyrgyzstan's economic development - the level of insecurity in the external environment - is still high.

Taking into account the current development of internal and external economic factors, the National Bank of Kyrgyzstan decided to keep the interest rate unchanged.

The next scheduled meeting of the Board of the bank on the issue of the interest rate will take place on April 24.