Monday, June 29, 2015

Kyrgyzstan holds rate as external markets still uncertain

   The central bank of the Kyrgyz Republic kept its policy rate steady at 9.50 percent, saying the situation on external financial markets have remained uncertain since last month, and the key factors determining inflation and economic growth remain unchanged.
    The National Bank of the Kyrgyz Republic cut its rate by 150 basis points in May in light of the decline in inflation and a slowdown in domestic and foreign demand.
    Inflation in Kyrgyzstan slowed further in May to 6.0 percent from 7.9 percent in April for the fourth consecutive month of deceleration and as of June 19 inflation had declined further to 4.8 percent compared with 11.6 percent in January, the central bank said.
    The central bank added that high economic growth in January through May of 6.9 percent was driven by the expansion of output at the Kumtor gold mine. Excluding Komtor, Gross Domestic Product growth was 3.9 percent.
    In the first quarter of 2015, Kyrgyzstan's GDP expanded by an annual 7.0 percent.



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