The National Bank of the Kyrgyz Republic kept its benchmark interest rate unchanged at 12.0% at its meeting on July 27, 2026, thereby maintaining tight monetary conditions to contain persistent inflationary pressures. Since the beginning of 2026, inflation has risen by 6.5%, bringing annual inflation to 11.3%. This acceleration has been driven primarily by higher food and fuel prices amid volatility in global commodity markets and heightened geopolitical tensions in the Middle East.
The central bank cautioned that ongoing risks to oil product supplies transiting the Strait of Hormuz continue to fuel imported inflation. In addition, rising service costs have been reinforced by recent tax reforms. At the same time, the economy has remained resilient: real GDP expanded by 11.9% year-on-year, supported by strong domestic demand and robust investment, particularly in the construction sector.
The bank reiterated its commitment to maintaining restrictive monetary conditions in order to guide inflation toward its medium-term target range of 5%–7%. It also signaled its readiness to tighten policy further if risks to price stability intensify.
