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.
China is to provide $250mn for the construction of a new and expensive parliamentary building in Tajikistan, CA-News reported on July 20. Tajikistan is ... more
Some creditor banks of struggling Saudi construction giant Oger’s Dubai-based unit Oger Telecom are in unofficial talks to sell its 55% stake in Turkey’ largest telecom operator Turk ... more
The Ukrainian authorities have issued domestic government bonds in the amount of UAH22.5bn (€759mn) in exchange for the bank’s shares as part of the additional capitalisation of nationalised ... more