FX.co ★ Kyrgyzstan Keeps Key Rate Steady at 9%

The National Bank of the Kyrgyz Republic opted to retain its benchmark interest rate at 9.00% during its April 2025 meeting. This marks the continuation of borrowing costs at their lowest point since January 2022. This decision was underpinned by stable inflation and vigorous economic activity. Inflation within the Kyrgyz Republic remains at moderate levels; consumer prices have risen by 1.96% year-to-date, and the annual inflation rate sits at 6.9%, comfortably within the National Bank's target range of 5-7%. These figures are bolstered by a slowdown in the growth of non-food and services prices. Concurrently, economic activity remains strong, evidenced by a 13.1% increase in real GDP during the first quarter of 2025, fueled by expansions in services, construction, and industry sectors, driven by robust consumer and investment demand. The board remains vigilant, consistently evaluating both domestic and international economic landscapes, ready to adjust monetary policy should any potential risks arise. Additionally, the committee has maintained the overnight credit and deposit rates at 11% and 4%, respectively.