The Board of the National Bank of Kyrgyzstan, as previously mentioned, raised the discount rate on February 23, 2026, by 100 basis points to 12%. This decision will take effect on February 24, 2026.
The situation in the external economic arena remains diverse and highly uncertain. There is a slowdown in the growth rates of prices for essential goods in global food markets; however, inflation in the countries that are Kyrgyzstan's main trading partners is still at a high level. Given the significant share of imports in the consumer basket, domestic prices continue to respond to changes in the external environment.
The future dynamics of prices largely depend on the stability of global supply chains and trade flows, which face risks due to geopolitical tensions and the fragmentation of the global economy.
In such conditions, it is necessary to adhere to a balanced approach in monetary policy to ensure price stability in the country.
As of early 2026, inflation in Kyrgyzstan was 1.8 percent (year-on-year – 9.6 percent) as of February 13. The overall price dynamics fall within the expected framework, 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 goods. However, prices in the services sector and for non-food goods continue to rise, driven by both external and internal demand factors.
The economy of Kyrgyzstan is demonstrating high growth rates — in January 2026, real GDP increased by 9.0 percent. An acceleration in economic activity is observed in the services and construction sectors. Investments in fixed capital remain at a high level, contributing to the development of infrastructure projects.
Nevertheless, the growth of real incomes of the population and active consumer lending support domestic demand, which in turn creates an additional inflationary impulse.
Monetary conditions continue to ensure the purchasing power of the national currency and contribute to price stability within the target range of 5-7 percent in the medium term.
The interbank money market is functioning stably, with the BIR rate near 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 system. The domestic currency market also remains stable, with currency interventions conducted only to smooth out sharp fluctuations in the exchange rate.
The banking sector demonstrates its resilience. In 2025, the volume of the banks' deposit base increased by 46.2 percent, reaching 865.9 billion soms, indicating trust in the banking system and an increase in the saving behavior of the population. The loan portfolio of commercial banks in 2025 grew by 48.8 percent, reaching 507.0 billion soms, reflecting the activity of the real sector of the economy.
Future inflation will depend on the balance of external and internal factors. In the context of inflationary factors, such as a positive fiscal impulse, an increase in the GDP gap, and rising consumer demand, it is necessary to tighten monetary conditions to create sustainable prerequisites for reducing inflation. Therefore, the National Bank's discount rate was raised to 12.00 percent.
The National Bank continues to adhere to a balanced approach in monetary policy and carefully assesses the current external and internal factors affecting inflation. If risks to price stability arise, the possibility of adjusting monetary policy is not excluded.
The next meeting of the National Bank's Board, dedicated to the discount rate, is scheduled for April 27, 2026, as reported in the National Bank's press release.
The future dynamics of prices largely depend on the stability of global supply chains and trade flows, which face risks due to geopolitical tensions and the fragmentation of the global economy.
In such conditions, it is necessary to adhere to a balanced approach in monetary policy to ensure price stability in the country.
As of early 2026, inflation in Kyrgyzstan was 1.8 percent (year-on-year – 9.6 percent) as of February 13. The overall price dynamics fall within the expected framework, 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 goods. However, prices in the services sector and for non-food goods continue to rise, driven by both external and internal demand factors.
The economy of Kyrgyzstan is demonstrating high growth rates — in January 2026, real GDP increased by 9.0 percent. An acceleration in economic activity is observed in the services and construction sectors. Investments in fixed capital remain at a high level, contributing to the development of infrastructure projects.
Nevertheless, the growth of real incomes of the population and active consumer lending support domestic demand, which in turn creates an additional inflationary impulse.
Monetary conditions continue to ensure the purchasing power of the national currency and contribute to price stability within the target range of 5-7 percent in the medium term.
The interbank money market is functioning stably, with the BIR rate near 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 system. The domestic currency market also remains stable, with currency interventions conducted only to smooth out sharp fluctuations in the exchange rate.
The banking sector demonstrates its resilience. In 2025, the volume of the banks' deposit base increased by 46.2 percent, reaching 865.9 billion soms, indicating trust in the banking system and an increase in the saving behavior of the population. The loan portfolio of commercial banks in 2025 grew by 48.8 percent, reaching 507.0 billion soms, reflecting the activity of the real sector of the economy.
Future inflation will depend on the balance of external and internal factors. In the context of inflationary factors, such as a positive fiscal impulse, an increase in the GDP gap, and rising consumer demand, it is necessary to tighten monetary conditions to create sustainable prerequisites for reducing inflation. Therefore, the National Bank's discount rate was raised to 12.00 percent.
The National Bank continues to adhere to a balanced approach in monetary policy and carefully assesses the current external and internal factors affecting inflation. If risks to price stability arise, the possibility of adjusting monetary policy is not excluded.
The next meeting of the National Bank's Board, dedicated to the discount rate, is scheduled for April 27, 2026, as reported in the National Bank's press release.
