BISHKEK, May 28 (Xinhua) -- The National Bank of Kyrgyzstan reduced the discount rate from 11 percent to nine percent, said the agency in a statement on Tuesday.
Inflation in Kyrgyzstan continues to decline, reaching 4.4 percent in May, down from 7.3 percent in December 2023. Economic activity in the country remains robust, with real GDP growth of 7.4 percent from January to April 2024, said the bank.
It said the situation in the interbank money market remains stable, noting that short-term interest rates on the money market show a decline following changes in the National Bank's key rate.
The banking system maintains a high level of excess liquidity in the national currency, creating preconditions for further expansion of lending to the real sector of the economy, it said.
"The steady slowdown in annual inflation in Kyrgyzstan, coupled with the expected formation of its value by the end of this year within the medium-term target of 5-7 percent, creates space for easing monetary policy. Under these conditions, the National Bank decided to reduce the discount rate to 9 percent," said the statement.
In April, the National Bank reduced the discount rate from 13 percent to 11 percent. ■
