The National Bank of the Kyrgyz Republic raised its benchmark interest rate by 100 basis points to 12.00% at its meeting on February 23, 2026, bringing borrowing costs to their highest level since March 2024. Since the beginning of 2026, consumer prices have increased by 1.8%, pushing annual inflation to 9.6%. Although food price growth has begun to moderate, inflation in services and non‑food goods remains elevated, supported by strong consumer demand and secondary external factors.
Economic activity continues to expand at a robust pace. In January, real GDP grew by 9.0% year-on-year, driven primarily by the construction and services sectors. The central bank reported that financial and foreign exchange markets remain stable, but it underscored persistent risks stemming from global supply chain disruptions, geopolitical tensions, and high inflation in key trading partner countries.
The National Bank reaffirmed its commitment to returning inflation to its medium-term target range of 5–7% and signaled its readiness to tighten policy further should risks to price stability intensify. The next policy meeting is scheduled for April 27, 2026.
