Kyrgyz Central Bank Holds Key Rate at 12%

2026-04-28 04:12 By Joshua Ferrer 1 min. read

The National Bank of the Kyrgyz Republic left its benchmark interest rate unchanged at 12% at its April 27, 2026 meeting, maintaining the highest borrowing costs since March 2024 to contain rising inflation.

Inflation rose 3.9% since the start of 2026 and annual inflation reached 11.3% as of April 17, driven by higher food, non-food, and especially services prices.

The central bank pointed to rising global prices for cereals, vegetable oils, and energy products amid escalating Middle East tensions, alongside elevated inflation in trading partners and higher logistics costs, as ongoing sources of imported inflation.

Domestic demand also remained strong, supported by wage growth and remittance inflows, while real GDP expanded 10.1% year-on-year in January-March.

Despite relatively stable exchange rate dynamics helping anchor expectations, the bank said tight monetary conditions remain necessary to return inflation to its 5–7% target.

The next policy meeting is scheduled for May 25, 2026.



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Kyrgyz Central Bank Holds Key Rate at 12%
The National Bank of the Kyrgyz Republic left its benchmark interest rate unchanged at 12% at its April 27, 2026 meeting, maintaining the highest borrowing costs since March 2024 to contain rising inflation. Inflation rose 3.9% since the start of 2026 and annual inflation reached 11.3% as of April 17, driven by higher food, non-food, and especially services prices. The central bank pointed to rising global prices for cereals, vegetable oils, and energy products amid escalating Middle East tensions, alongside elevated inflation in trading partners and higher logistics costs, as ongoing sources of imported inflation. Domestic demand also remained strong, supported by wage growth and remittance inflows, while real GDP expanded 10.1% year-on-year in January-March. Despite relatively stable exchange rate dynamics helping anchor expectations, the bank said tight monetary conditions remain necessary to return inflation to its 5–7% target. The next policy meeting is scheduled for May 25, 2026.
2026-04-28
Kyrgyz Central Bank Raises Key Rate to 12.00%
The National Bank of the Kyrgyz Republic raised its benchmark interest rate by 100 basis points to 12.00% at its February 23, 2026 meeting, marking the highest borrowing costs since March 2024. Inflation has risen by 1.8% since the start of 2026, with annualized inflation at 9.6%. While food price growth has moderated, services and non-food prices remain elevated, driven by robust consumer demand and secondary external effects. Economic activity continues to expand at a solid pace, with real GDP growing 9.0% year-on-year in January, supported by construction and services. The central bank noted stable financial and foreign exchange markets but emphasized risks from global supply chain disruptions, geopolitical tensions, and high inflation among trading partners. It reiterated its commitment to guiding inflation back to its 5–7% medium-term target and signaled readiness to adjust policy further if price stability risks intensify. The next policy meeting is set for April 27, 2026.
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Kyrgyz Central Bank Holds Key Rate at 11.00%
The National Bank of the Kyrgyz Republic kept its benchmark interest rate unchanged at 11.00% at its January 26, 2026 meeting, holding borrowing costs steady at their highest level since April 2024. The pause follows earlier tightening and reflects the central bank’s assessment that current monetary conditions remain sufficiently restrictive to guide inflation back toward its 5–7% medium-term target. Annual inflation stood at 9.4% in mid-January, unchanged from end-2025, with food price growth easing slightly while non-food goods and services continued to rise. Economic activity remains robust, with real GDP expected to grow by about 11.1% in 2025, driven by construction and services. The central bank highlighted ongoing external risks, including volatile global food and commodity prices and geopolitical uncertainty, and signaled it may adjust policy if price stability risks intensify. The next policy meeting is scheduled for February 23, 2026.
2026-01-27