Monday, December 23, 2019

Kyrgyzstan maintains rate as inflation remains moderate

     Kyrgyzstan's central bank kept its discount rate steady at 4.25 percent, saying inflation remains moderate and is not expected to exceed its target of 5 to 7 percent in 2020.
     The National Bank of the Kyrgyz Republic (NBKR), which cut its rate twice this year by a total of 50 basis points, said inflation would average around 1.2 percent this year after it rose further to 2.9 percent as of Dec. 20 due to the positive contribution of food prices.
     Since March 2016 the central bank has cut its rate 7 times by a total of 575 basis points.
     Based on the expected trends in global and regional markets, NBKR said it doesn't see any significant inflationary risks in the coming period but in the event of risks in the internal and external environment it may consider adjusting its current monetary policy stance.
     Economic activity in the Kyrgyz Republic continues to expand, with real gross domestic product up by 4.9 percent in the first 11 months of the year, with higher output in all major sectors of the economy.
     Excluding output from the Kumtor gold mine, GDP grew 3.5 percent, NBKR added.
     The central bank also said the positive trends in the monetary and financial sectors were continuing with the volatility of short-term interest rates in money markets declining due to the bank's actions and the dollarization of the economy is also continuing its downward trend.
     The exchange rate of the Kygyzstani som has been steady this year, trading at 69.8 to the U.S. dollar today, the same as at the start of this year.



Post a Comment