The Board of the National Bank of the Kyrgyz Republic on Monday, September 28, 2015 decided to increase the discount rate by 200 basis points to 10% per annum.

High economic growth rates in January-August 2015 (6.8%) were mainly due to increased production at the Kumtor mine development enterprises. The real GDP growth rate excluding Kumtor was 4.5%.

Nevertheless, a reduction in the volume of foreign trade transactions and the inflow of remittances continues to be observed, including due to the depreciation of the national currencies of the countries that are the main trading partners of the Kyrgyz Republic. Instability in external financial markets remains, which, together with these factors, is one of the main reasons for the increased pressure on the domestic currency market of our country, which may increase inflationary pressure in the short and medium term.

As of mid-September of this year, annual inflation was 6.2% (as of the 18th) compared to 5.8% a month earlier.

Taking into account the forecast dynamics of inflation processes, the National Bank of the Kyrgyz Republic will continue to monitor the situation in the country's economy and, in accordance with its legally defined powers, will take appropriate monetary policy measures. Monetary policy will be aimed at achieving and maintaining inflation at a level of 5-7% in the medium term, which is determined by the Main Directions of Monetary Policy of the National Bank of the Kyrgyz Republic for the Medium Term.

The next meeting of the Board of the National Bank of the Kyrgyz Republic, which will consider the issue of the discount rate, is scheduled for October 26, 2015.

Source: http://ub.kg/ru/natsionalnyj-bank-kr-prinyal-reshenie-povysit-razmer-uchetnoj-stavki-do-10/