NBKR's news


Date: 26.09.2017

 

 

 

Press Release  

National Bank of the Kyrgyz Republic keeps  

its policy rate unchanged at 5.0 percent  

 

On September 25, 2017, the Board of the National Bank of the Kyrgyz Republic decided to keep the policy rate unchanged at 5.0 percent. The decision becomes effective as of September 26, 2017. 

Inflation in the Kyrgyz Republic continues to demonstrate moderate dynamics within the values ​​expected by the National Bank, which tends to the lower boundary of the target range of 5-7 percent in the medium term. Annual inflation (as of September 15, 2017) made up 3.2 percent, having decreased from 3.8 percent in August. Gradual recovery of domestic demand and dynamics in imported food prices keep being the main factors of inflation.  

Positive trends continue in the economy of the Kyrgyz Republic due to the improvement of the external and internal conditions. In January-August 2017, the economic growth was 6.0 percent. Excluding the data of the “Kumtor”1 gold-mining enterprises real GDP growth made 3.6 percent. The main sectors of economy show the output growth. The economy growth is also supported by an increase in the inflow of remittances. The net inflow of remittances increased by 28.8 percent in January-July 2017. 

The domestic foreign exchange market remains stable. From the beginning of 2017 (as of September 21) the national currency has appreciated by 1.1 percent. In September 2017, the National Bank did not participate in the domestic foreign exchange market. 

Monetary conditions continue to support measures to stimulate the real sector of the economy. The countrys banking system has a sufficient level of excess liquidity in the national currency. Short-term money market rates in the national currency continue to fluctuate within the interest rate corridor set by the National Bank. Decrease in interest rates on loans for the end borrowers and expansion of lending are being observed. 

According to the current forecasts of the National Bank, taking into account the ongoing recovery of domestic demand, balanced forecasts for agriculture production in the country and price dynamics in the international commodities markets, the inflation rate in the upcoming period will be close to the medium-term target range of 5-7 percent. Under these conditions, as well as in the absence of external and internal inflationary risks, this level of the policy rate of the National Bank will allow supporting the measures to stimulate the economy. 

The National Bank on a regular basis assesses external and internal factors influencing inflation and depending on the economic situation will take relevant and timely monetary policy measures. 

 

Briefing: 

The next meeting of the Board of the National Bank of the Kyrgyz Republic on the monetary policy rate is scheduled for November 27, 2017. 

 

 

 

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1The real GDP value without Kumtor enterprises is more indicative for the monetary policy purposes.

 

 


Date: 14.09.2017

In Kyrgyzstan, the mission of the International Monetary Fund carried out its work 

 

During the period of September 7 and 13, 2017, the International Monetary Fund (IMF) mission conducted its work in the Kyrgyz Republic.  

The purpose of the visit was to discuss the latest trends in the country's economy, the completion of consultations on Article IV and the maintenance of a dialogue on the implementation of the economic program within the framework of the IMF extended credit facility. 

Within the framework of the visit, meetings were held with representatives of the Government of the Kyrgyz Republic, the National Bank of the Kyrgyz Republic and other organizations.  

 

For reference: 

In April 2015, the IMF Executive Board approved a new three-year agreement to support the economic program of the Kyrgyz Republic within the framework of an extended credit facility (ECF) in an amount equivalent to 66.6 million special drawing rights (approximately $ 92.4 million). The aim of the program is to ensure macroeconomic stability and sustainable economic development of the country in the medium term. 


Date: 30.08.2017

 

 

 

 

Press Release  

National Bank of the Kyrgyz Republic keeps  

its policy rate unchanged at 5.0 percent  

 

On August 28, 2017, the Board of the National Bank of the Kyrgyz Republic decided to keep the policy rate unchanged at 5.0 percent. The decision becomes effective as of August 29, 2017. 

Actual inflation continues to be within the values ​​expected by the National Bank, which tends to the lower boundary of the target range of 5-7 percent in the medium term. Annual inflation (as of August 18, 2017) made up 3.9 percent. The observed growth of domestic and external demand is the main factor of inflation. 

The economic activity indicators of the Kyrgyz Republic continue to be in the positive phase. In January-July 2017, the economic growth was 6.9 percent. Excluding the data of the “Kumtor” gold-mining enterprises real GDP growth made 3.6 percent. The positive economic growth rates are mainly influenced by improved situation in the main trading partner countries and by an increase in the inflow of remittances. The main sectors of economy show the output growth. One of the factors of production capacity improvement is an increase in lending the real sector of economy and, in general, lowering trend in interest rates on loans. The net inflow of remittances increased by 28.8 percent in January-July 2017. 

The domestic foreign exchange market remains stable. From the beginning of 2017 (as of August 25) the national currency has appreciated by 0.9 percent. In August 2017, the National Bank did not participate in the domestic foreign exchange market.  

The interest rate policy of the National Bank aimed at supporting measures to stimulate the economy conditioned the maintaining money market rates within the range of interest rate corridor set by the National Bank and, as a result, causing a drop in the interest rates on loans for the end borrowers. In general, the banking system of the country continues to maintain a sufficient level of free liquidity in the national currency. 

According to the current forecasts of the National Bank, in the forthcoming period inflation will be within the medium-term target range of 5-7 percent taking into account the growth trend of domestic and external demand as well as the prerequisites for domestic production of agricultural products and the dynamics of world food prices. Under these conditions and given the absence of external and internal inflationary risks, the decision to keep the National Banks policy rate at the current level will support the measures to stimulate the economy

The National Bank on a regular basis assesses external and internal factors influencing inflation and will continue to take relevant and timely monetary policy measures.  

 

Briefing: 

The next meeting of the Board of the National Bank of the Kyrgyz Republic on the monetary policy rate is scheduled for September 25, 2017. 

 

 

 


Date: 23.08.2017

The Governor of the National Bank of the Kyrgyz Republic had a meeting with students from Japan 

August 22, 2017 the Governor of the National Bank of the Kyrgyz Republic had a meeting with Nagoya University students (Japan). Within the framework of this meeting, the Governor of the National Bank of the Kyrgyz Republic made a presentation on the topic of «Economic Situation in the Kyrgyz Republic», which also covered the issues of monetary and fiscal policy, exchange rate, banking and payment systems. After the presentation, the students had chance to ask questions and visited the numismatic museum of the National Bank of the Kyrgyz Republic. 

 

 

 

 

 

 

 


Date: 30.05.2017

Press-release  

The National Bank of the Kyrgyz Republic keeps  

its policy rate unchanged at 5.0 percent  

 

 

On May 29, 2017, the Board of the National Bank of the Kyrgyz Republic decided to keep the policy rate unchanged at 5.0 percent. The decision becomes effective as of May 30, 2017. 

Inflation continues to be within the values expected by the National Bank and does not exceed the target range of 5-7 percent in the medium term. Annual inflation (as of May 19) made up 3.7 percent. The recovery trend of domestic consumption supported by growing inflow of remittances as well as an increase in external demand keeps affecting the current inflationary dynamics. The positive dynamics in price of food and services strongly contributed to inflation formation. 

The economy of the Kyrgyz Republic demonstrates positive growth rates. In January-April 2017, the economic growth was 7.7 percent. Excluding the data of the “Kumtor” gold-mining enterprises real GDP growth reached 4.0 percent. Positive economic dynamics is supported by revival of internal and external demand. On the supply side positive trends are also noted, one of the factors of which is an increase in lending in national currency to the main sectors of the economy and decrease its interest rates. 

The situation in the domestic foreign exchange market remains stable. The national currency continues to strengthen. From the beginning of 2017 (as of May 26), Som has appreciated by 1.9 percent. In May 2017, the National Bank did not participate in the domestic foreign exchange market. 

The effect of earlier undertaken measures to ease monetary conditions observed in the reduction of short-term money market rates in the national currency, thus causing a current drop in interest rates on loans. The latter is also facilitated by the monetary policy of the National Bank aimed at expanding lending to the real sector so as to support positive economic growth. 

According to the forecasts of the National Bank, taking into account the current development of the external economic environment and internal conditions in the forthcoming period inflation will be moderate and will be close to the target range of 5-7 percent in 2017. Under these conditions and given low inflationary risks, the decision to keep the National Bank policy rate at the current level will support further economic recovery.  

The National Bank on a regular basis assesses external and internal factors influencing inflation and will continue to take relevant and timely monetary policy measures. The National Bank intends to adhere to the current direction of the monetary policy in the upcoming period in the absence of external shocks. 

 

Briefing: 

The next meeting of the Board of the National Bank of the Kyrgyz Republic on the monetary policy rate is scheduled for June 26, 2017. 


Date: 27.04.2017

From April 29 to May 1, 2017, in connection with the implementation of preventive works, there may be short-term interruptions with access to the National Bank's website www.nbkr.kg. We apologize for any inconvenience.