On Reasons and Prices
The National Bank noted that "the external economic situation is characterized by high uncertainty." "On global food markets, there is a slowdown in the growth of prices for key goods, but inflation in the countries that are major trading partners of Kyrgyzstan remains at a high level," the representatives of the institution added.
Reference 24.kg
The discount rate is the main tool of the central bank's monetary policy, which regulates the cost of short-term loans for commercial banks and, consequently, affects the lending conditions for businesses and the population.
"Given the significant share of imports in the consumer basket, domestic prices continue to respond to changes in the external environment. The dynamics of prices in the future will largely depend on the stability of global supply chains and trade flows, which are exposed to risks due to geopolitical tensions and fragmentation of the global economy. In such conditions, careful conduct of monetary policy is necessary to maintain price stability," the National Bank justified its decision to raise the key rate.
As of February 13, 2026, inflation in Kyrgyzstan was 1.8 percent (year-on-year — 9.6 percent).
National Bank of the KR
"Prices are generally developing within the expected trajectory, although there is heterogeneity in the main components of the consumer basket. Prices for food products are rising moderately due to the stabilization of prices for some products. However, in the services sector and non-food goods, high price dynamics remain, driven by both external and internal demand factors," the National Bank of the KR reported.
On the State of the Economy and Population Income
The National Bank emphasized that "the economy continues to demonstrate high growth rates." "In January 2026, real GDP increased by 9 percent. An increase in economic activity is observed in construction and the services sector. Investments in fixed assets remain at a high level, contributing to the development of infrastructure projects," noted the National Bank of the KR.
The growth of real incomes of the population and the increase in consumer lending support domestic demand, creating additional inflationary impulses.
National Bank of the KR
"The conditions of monetary policy contribute to maintaining the purchasing power of the national currency and create prerequisites for ensuring price stability within the target level of 5-7 percent in the medium term. The interbank money market operates steadily, and the BIR rate is close to the lower boundary of the National Bank's interest corridor, reflecting the balance of supply and demand for short-term resources in conditions of excess liquidity in the banking sector," the National Bank of the KR added.
On the Currency Market and Banking System
The country's currency market continues to remain stable. Interventions in the currency market are carried out only to smooth out sharp fluctuations in the exchange rate, as stated by the National Bank.
"The banking system sector demonstrates resilience. In 2025, the volume of deposits increased by 46.2 percent, reaching 865.9 billion soms, which indicates trust in the system and growth in savings among the population. The loan portfolio of commercial banks increased by 48.8 percent in 2025, amounting to 507 billion soms, reflecting activity in the real sector of the economy," noted the National Bank of the KR.
On Inflation
"The medium-term trajectory of inflation will be determined by the interaction of external and internal factors. In conditions of inflationary factors, including a positive fiscal impulse, an increase in the GDP gap, and rising consumer demand, it is necessary to tighten monetary conditions to create stable conditions for slowing inflation. In this regard, the discount rate of the National Bank has been raised to 12 percent," the National Bank of the KR concluded.
"The National Bank continues to adhere to a balanced approach in conducting monetary policy and closely monitors both internal and external inflationary factors. In the event of risks to price stability, the regulator does not rule out the possibility of adjusting its monetary policy," the National Bank assured.
- The next meeting of the Board of the National Bank of the KR regarding changes to the discount rate is scheduled for April 27, 2026.
