The National Bank of the Kyrgyz Republic decided to keep its discount rate (key rate) unchanged at 11.00 percent, with the decision taking effect on January 27, 2026. The central bank framed the hold as consistent with maintaining relatively tight monetary conditions to bring inflation back to its 5–7 percent target range in the medium term. Economic activity remained strong, with real GDP growth of 11.1 percent by end-2025, driven mainly by construction and services, alongside elevated investment supported by expanded budget financing. Inflation was 9.4 percent year on year as of January 16, 2026, unchanged from end-December 2025, with a slight slowing in food inflation but continued elevated price pressures in non-food goods and services, linked to secondary effects from external factors, annual tariff revisions, and strong domestic demand. With banking-sector liquidity still high, the central bank continued sterilization operations, and the interbank benchmark interest rate BIR was forming near the lower bound of its interest rate corridor; it also reported stability in the domestic foreign exchange market. The National Bank indicated it will continue to assess external and domestic inflation risks and did not rule out adjusting monetary policy if price stability risks materialise. The next scheduled Board meeting on the discount rate is set for February 23, 2026.
National Bank of the Kyrgyz Republic 2026-01-27
National Bank of the Kyrgyz Republic keeps key rate at 11.00 percent and maintains relatively tight monetary conditions
The National Bank of the Kyrgyz Republic maintained its discount rate at 11.00 percent to sustain tight monetary conditions aimed at returning inflation to its 5–7 percent target range, amid strong economic activity and persistent inflationary pressures. The central bank will continue monitoring inflation risks and may adjust policy if necessary, with the next rate decision scheduled for February 23, 2026.