The Board of the National Bank of the Kyrgyz Republic left the discount (key) rate unchanged at 12.00 % with effect from 26 May 2026, arguing that maintaining tight monetary conditions is essential to dampen heightened external and domestic price pressures and steer inflation back to the 5-7 % medium-term target band. After a 100 bp hike to 12.00 % in February 2026 the rate has been on hold at both the April and May reviews. The central bank said money and foreign-exchange markets remain stable, with ample excess liquidity in the banking system being actively absorbed through its instruments and a relatively steady som helping to contain inflation expectations. Consumer prices rose by 4.7 % since the start of the year and by 10.9 % year on year as of 15 May, fuelled chiefly by higher food and service costs, forthcoming increases in electricity and utility tariffs, tax-related reforms and robust internal demand; real GDP grew 12.4 % in January–April, driven by services, industry and construction on the back of stronger consumption and investment. External risks remain elevated amid ongoing geopolitical tensions in the Middle East, volatile global food and energy prices and potential supply-chain disruptions. The central bank will continue to monitor inflation drivers and said it is ready to act promptly should risks to price stability intensify.
National Bank of the Kyrgz Republic2026-05-25
National Bank of the Kyrgyz Republic leaves discount (key) rate unchanged at 12.00%
National Bank of the Kyrgyz Republic kept the discount rate at 12.00 % effective 26 May 2026, saying tight policy is needed to bring inflation, now 10.9 % y/y against a 5-7 % target, back to target amid robust demand and external price pressures. The rate has held since a 100 bp hike in February and the bank, noting stable markets and absorbed excess liquidity, signalled readiness to act again if price risks rise.