The National Bank’s discount rate will not change till the end of February, chairman of the National Bank of Kyrgyzstan Tolkunbek Abdygulov told a press conference.
At a meeting of the Board of the National Bank it was decided to keep the size of the discount rate (policy rate) at the level of five percent. In 2017, the National Bank has never changed the size of the discount rate.
“In December, the annual inflation rate remained at a moderate level, reaching 3.7 percent as of December 15. This does not exceed the medium-term target. Amidst the recovery of prices on world commodity markets and the growing aggregate demand, inflation is within the target of monetary policy. The current situation in the foreign exchange market is stable. In the first decade of December, the National Bank of the Kyrgyz Republic conducted currency interventions to smooth out sharp fluctuations in the exchange rate,” Tolkunbek Abdygulov said.
The National Bank noted that monetary conditions continue to support measures to stimulate the real sector of the economy and the development of the money market. The banking sector of the country noted a decline in market interest rates on loans and growth in lending to the economy. The growth of activity on the interbank foreign exchange market remains. Short-term money market rates in national currency continue to fluctuate within the percentage range set by the National Bank.
“The outlook for the development of the external economic environment and the restoration of domestic demand will help to bring the inflation rate closer to the medium-term target, which does not exceed 5-7 percent. In these conditions and in the absence of additional external and internal inflationary shocks in the coming period, the preservation of the discount rate will continue to stimulate the real sector of the economy,” Tolkunbek Abdygulov summed up.
Reported by Tatyana Kudryavtseva for 24.kg.