The National Bank of the Kyrgyz Republic has lowered its policy interest rate by 200 basis points to 6%, the bank said on May 31.
The decision was based on the continuing downward trend of the inflation rate, which is mainly driven by falling domestic prices for food and declining domestic demand, the bank said in a statement published on its website. Annual inflation eased sharply to 0.2% as of May 20 from 3.4% at beginning of the year.
Given weak inflationary pressures and the current slowdown in economic activity in the country, the decision to lower the policy rate supports “measures to stimulate the real economy while maintaining low inflationary risks”.
The bank also reiterated that Kyrgyzstan’s economy shrank by 4.9% in January-April. Economic growth this year is projected to weaken to 1% from 3.5% in 2015, according to the EBRD's latest forecast published in May.
The central bank will continue its policy of maintaining a 5% to 7% inflation rate “in the medium term”, the statement read.
Related Articles
European Union increases humanitarian aid to Syria to €202mn
The European Union announced on May 27 an increase in humanitarian aid to Syria to more than €202mn for this year, SANA reported. The additional funding will ... more
MBH Bank Tier 2 bond sale oversubscribed 3.5 times
Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
10 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago