The National Bank of the Kyrgyz Republic kept its key rate at 12.00%, effective July 28, 2026, judging that tightened monetary conditions remain necessary to contain inflation pressures driven by external shocks and strong domestic demand. Over the past year, it raised the rate from 9.25% in July 2025 to 12.00% by February 2026, including a 100 bp increase in February. The central bank said interbank money and foreign exchange markets remain stable, short-term money market rates are close to the key rate, and excess liquidity in commercial banks is being actively managed with its monetary instruments. Inflation since the start of 2026 stood at 6.5%, or 11.3% year on year as of July 17, with food and fuel prices showing notable increases and services prices staying elevated, while real GDP grew 11.9% in the first half of 2026 amid rising real household incomes and strong investment activity, mainly in construction. The central bank said its measures are expected to support savings, preserve the purchasing power of the national currency and create conditions to slow inflation to the 5-7% target range over the medium term. It cited volatile global food prices, risks of oil product supply disruptions through the Strait of Hormuz and heightened geopolitical tensions in the Middle East as key external inflation drivers, and said it will continue assessing external and domestic factors and respond promptly if risks to price stability emerge.
National Bank of the Kyrgz Republic2026-07-27
National Bank of the Kyrgyz Republic Keeps Key Rate at 12.00%
The National Bank of the Kyrgyz Republic kept its key rate at 12.00%, effective July 28, 2026, saying tightened monetary conditions remain necessary to contain inflation pressures from external shocks and strong domestic demand. Inflation stood at 6.5% since the start of 2026 and 11.3% year on year as of July 17, while real GDP grew 11.9% in the first half, and the central bank said it will continue to assess risks to return inflation to its 5-7% medium-term target range.