On February 23, 2026, the Board of the NBKR decided to raise the key interest rate by 100 basis points, setting it at 12.00%. This change took effect today, as reported in the bank's press release.
The NBKR notes that the external economic situation remains unstable, with a high degree of uncertainty. There is a slowdown in the growth rates of prices for key goods in global food markets; however, inflation in the countries with which the Kyrgyz Republic actively trades continues to remain at a high level. Given the significant volume of imports in the consumer basket, domestic prices remain under pressure from changes occurring outside the country. Expectations regarding the further development of the price situation largely depend on the stability of global supply chains and trade flows, which are exposed to risks amid increasing geopolitical tensions and the division of the global economy. In such conditions, it is necessary to conduct a balanced monetary policy to ensure price stability in the country, the NBKR emphasizes.
As of February 13, 2026, inflation in Kyrgyzstan since the beginning of the year was 1.8%, and on an annual basis — 9.6%. Prices for food products are rising at a moderate pace due to the stabilization of prices for certain items. However, there is increased price dynamics in the services and non-food goods sectors, driven by both external factors and domestic demand.
The economy of the Kyrgyz Republic is demonstrating steady growth. In January 2026, real GDP increased by 9.0%. Sustainable growth is observed in the services and construction sectors. A high level of investment in fixed capital contributes to the development of infrastructure projects. Additionally, the increase in real incomes of the population and the growth of consumer lending stimulate domestic demand, which in turn creates an additional pro-inflationary effect.
Monetary conditions continue to support the purchasing power of the national currency and contribute to achieving the target inflation level of 5-7% in the medium term. The interbank money market is operating steadily, with the BIR rate near the lower boundary of the NBKR's interest rate corridor, reflecting the balance of supply and demand for short-term resources amid excess liquidity in the banking system. The domestic foreign exchange market remains stable, and currency interventions are conducted only to smooth out sharp fluctuations in the exchange rate.
The banking services sector demonstrates its resilience. In 2025, the volume of deposits in banks increased by 46.2%, reaching 865.9 billion soms, confirming the public's trust in the banking system and the growth of saving habits. The loan portfolio of commercial banks grew by 48.8%, amounting to 507.0 billion soms, indicating activity in the real sector of the economy.
It is expected that the medium-term trajectory of inflation will depend on the balance of external and internal factors. Given the pro-inflationary trends, including the strengthening of fiscal impulse and growth in consumer demand, it is necessary to tighten monetary conditions to create a stable foundation for slowing inflation. In this regard, the NBKR's interest rate was raised to 12.00%.
The NB emphasizes that it continues to apply a balanced approach to monetary policy and closely monitors external and internal inflation factors. In the event of risks to price stability, the bank does not rule out the possibility of adjusting its monetary policy.
