The Board of the National Bank of the Kyrgyz Republic raised the discount (key) rate by 100 bp to 12.00 % to counter persistent inflationary pressures stemming from robust domestic demand and still-elevated external price risks. After being held at 11.00 % in January following a 100 bp hike in November 2025, the policy rate now stands at its highest in the current cycle. The interbank benchmark rate (BIR) continues to trade near the lower bound of the central bank’s corridor amid structural excess liquidity, which the authorities manage through active sterilisation operations. Annual inflation measured 9.6 % as of 13 February, above the 5–7 % medium-term target, while real GDP expanded 9.0 % y/y in January, propelled by services, construction and strong credit growth; bank deposits and loans surged 46.2 % and 48.8 % respectively in 2025, underscoring buoyant demand conditions. The domestic foreign-exchange market remains stable, with interventions limited to smoothing sharp exchange-rate swings. Globally, slowing food-price momentum contrasts with still-high inflation in key trading partners, and supply-chain risks persist amid geopolitical fragmentation. The central bank reiterated its balanced approach and signalled readiness to adjust policy further should risks to price stability intensify.
National Bank of the Kyrgz Republic 2026-02-23
NBKR raises key rate 100 bp to 12.00 %
The National Bank of the Kyrgyz Republic raised its discount (key) rate by 100 bp to 12.00 %, the cycle high, citing persistent inflationary pressure and external price risks. Annual inflation is 9.6 % versus a 5–7 % target amid strong growth and credit expansion, and the bank signalled readiness to tighten further if price-stability risks intensify.