Kyrgyzstan's National Bank Tightens Monetary Policy

RunWithRugs · 2026-02-27T01:37:34+00:00

The National Bank of Kyrgyzstan raised the key policy rate to 12% on February 24, 2026, amid economic uncertainty. Inflation remains at 1.8% with varying trends in price dynamics affecting food and services. A cautious monetary policy is essential for price stability.

RunWithRugs

2026-02-27 01:37:34

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(MENAFN- Trend News Agency) ** BISHKEK, Kyrgyzstan, February 24.** The Board of the National Bank of Kyrgyzstan (NBK) has decided to raise the discount (key policy) rate by 100 basis points to 12%, effective February 24, 2026, Trend reports via the press service of the NBK.

The external economic landscape is currently varied, marked by increased uncertainty. The global food markets are witnessing a steady deceleration in price increases for essential commodities, yet inflation levels in Kyrgyzstan’s primary trading partner nations continue to be high.

With imports playing a major role in the consumer basket, domestic prices remain highly responsive to fluctuations in external conditions. The future of price movements hinges significantly on the strength of global supply chains and trade flows, which are currently navigating challenges posed by geopolitical tensions and the ongoing fragmentation of the global economy.

Given these circumstances, it is essential to adopt a careful strategy for monetary policy to maintain price stability in Kyrgyzstan.

Inflation in Kyrgyzstan since the beginning of 2026 stood at 1.8% as of February 13 (9.6% year-on-year). Overall price dynamics remain within the expected trajectory, while uneven trends persist across the main components of the consumer basket. Food prices are showing moderate growth due to the stabilization of prices for certain products.

At the same time, elevated price dynamics continue in the services sector and for non-food goods, reflecting both secondary effects from external conditions and strengthening domestic demand factors.

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