Kyrgyz Central Bank Raises Key Rate to 12.00%

2026-02-24 04:19:20

The National Bank of the Kyrgyz Republic raised its benchmark interest rate by 100 basis points to 12.00% at its February 23, 2026 meeting, marking the highest borrowing costs since March 2024. Inflation has risen by 1.8% since the start of 2026, with annualized inflation at 9.6%. While food price growth has moderated, services and non-food prices remain elevated, driven by robust consumer demand and secondary external effects. Economic activity continues to expand at a solid pace, with real GDP growing 9.0% year-on-year in January, supported by construction and services. The central bank noted stable financial and foreign exchange markets but emphasized risks from global supply chain disruptions, geopolitical tensions, and high inflation among trading partners. It reiterated its commitment to guiding inflation back to its 5–7% medium-term target and signaled readiness to adjust policy further if price stability risks intensify. The next policy meeting is set for April 27, 2026.

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