Kyrgyzstan Holds Rates for Fifth Time

The National Bank of the Kyrgyz Republic kept its benchmark interest rate unchanged for a fifth consecutive meeting at 12.0% on October 26, 2026, maintaining tight monetary conditions despite a recent slowdown in price growth. Annual inflation eased to 10.8% in October from 12.2% in September, while cumulative inflation reached 8.5% since the start of the year. The central bank said tighter monetary conditions and government measures to ensure supplies of essential goods helped slow price increases, although geopolitical tensions and volatility in global food and energy markets continued to pose upside risks. Meanwhile, economic growth remained strong, with real GDP expanding 10.8% year-on-year in the first nine months of 2026, supported by robust investment, particularly in construction, and rising domestic consumption. The bank said it would maintain a cautious policy stance to bring inflation toward its target. The next rate-setting meeting is scheduled for November 30.

The National Bank of the Kyrgyz Republic left its benchmark interest rate unchanged for a fourth consecutive meeting at 12.0% on August 24, 2026, maintaining tight monetary conditions to contain persistent inflationary pressures. Consumer prices have risen 7.3% since the start of 2026, with annual inflation reaching 11.7%, driven by higher fuel and food prices amid global commodity volatility and ongoing geopolitical tensions. Meanwhile, the economy remained robust, with real GDP expanding 11.1% year-on-year in January-July, supported by strong investment activity, particularly in construction, and resilient domestic consumption. The central bank said tight monetary conditions remain necessary to limit external inflationary pressures and support a sustained decline in inflation, while remaining ready to adjust policy if risks to price stability intensify. The next policy meeting is scheduled for October 26.

The National Bank of the Kyrgyz Republic left its benchmark interest rate unchanged at 12.0% at its July 27, 2026 meeting, maintaining tight monetary conditions to contain persistent inflationary pressures. Inflation rose 6.5% since the start of 2026, with annual inflation reaching 11.3%, driven by higher food and fuel prices amid volatility in global commodity markets and heightened tensions in the Middle East. The central bank warned that risks to oil product supplies through the Strait of Hormuz continue to fuel imported inflation, while rising service costs have also been supported by tax reforms. Meanwhile, the economy remained resilient, with real GDP expanding 11.9% year-on-year, supported by strong domestic demand and robust investment, particularly in construction. The bank reaffirmed that it will maintain restrictive monetary conditions to steer inflation toward its 5%–7% medium-term target and stands ready to tighten policy further if risks to price stability intensify.