The National Bank of the Kyrgyz Republic kept its benchmark interest rate unchanged at 12% at its meeting on May 25, 2026, maintaining tight monetary conditions to curb inflationary pressures. Since the beginning of 2026, consumer prices have risen by 4.7%, bringing annual inflation to 10.9% as of May 15, largely driven by higher food prices and rising costs for services.
The central bank noted that escalating geopolitical tensions in the Middle East have heightened volatility in global energy and food markets, exacerbating imported inflation in the country’s highly import-dependent economy. At the same time, economic activity remains robust: real GDP grew by 12.4% year-on-year in January–April, supported by strong performance in services, industry, and construction amid increased investment.
The bank said domestic foreign exchange and money markets remain stable and reiterated that it is prepared to take additional measures should risks to price stability intensify. The next policy meeting is scheduled for July 27, 2026.
