The National Bank of the Kyrgyz Republic kept its policy rate at 12 percent, effective Aug. 25, maintaining tight monetary conditions to contain persistent external inflation pressures and limit second-round effects. Annual inflation stood at 11.7 percent, while consumer prices had risen 7.3 percent since the start of 2026. Higher global commodity prices and geopolitical tensions have increased import, fuel, food and production costs. Domestic service prices rose 11.1 percent, while food and nonfood goods prices increased 6.3 percent and 5.8 percent, respectively, from the start of the year. Real gross domestic product grew 11.1 percent in January-July, supported by construction investment, consumption, rising household incomes and credit growth. The central bank will continue managing excess banking-system liquidity and may adjust monetary policy if risks to price stability emerge. Its next scheduled policy-rate meeting is Oct. 26, 2026.
2026-08-25National Bank of the Kyrgyz Republic
National Bank of the Kyrgyz Republic holds policy rate at 12 percent amid persistent inflation risks
The National Bank of the Kyrgyz Republic held its policy rate at 12 percent as annual inflation reached 11.7 percent and external price pressures persisted. Tight monetary conditions remain in place to curb second-round inflation effects, with the next rate meeting scheduled for Oct. 26, 2026.