Kyrgyz central bank lowers policy rate to 8%

By bne IntelliNews March 30, 2016

The National Bank of the Kyrgyz Republic lowered its policy interest rate by 200 basis points to 8% on March 29, the bank disclosed after a meeting of the board.

The decision was based on the continuing downward trend of the inflation rate, which is mainly driven by falling domestic prices for food and petroleum products, according to the central bank’s statement. Consumer price index (CPI) “declined by 0.71% (as of March 18), reaching 0.8% in annual terms”, the statement said. Given the current slowdown in economic activity in the country, the decision to lower the policy rate “will support measures to stimulate the real sector of economy to restore its upward trend while maintaining low inflation risks in the current year”.  

The National Bank expects “moderate inflation growth” in 2016 at “the lower limit of 5-7%”, the statement added. Maintaining the 5% to 7% inflation rate is the bank’s “policy for the medium term”.

Related Articles

Kazakh central bank approves €1bn assistance package for four banks

Kazakhstan’s central bank announced on October 18 that it has approved an assistance package worth KZT410bn (€1.04bn) for ATF Bank, Eurasian Bank, Tsesna Bank and Bank ... more

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more