Tuesday, May 29, 2018

Kyrgyzstan cuts rate 25 bps, to maintain current policy

      Kyrgyzstan's central bank lowered its policy rate, the discount rate, by 25 basis points to 4.75 percent to help stimulate economic activity and said it intended to adhere to the current direction of monetary policy for the forthcoming period, provided there are no external shocks.
      It is the first rate cut by the National Bank of the Kyrgyz Republic (NBKR) since December 2016 and takes place against a backdrop of growing aggregate demand and moderate inflation.
      Kyrgyzstan's inflation rate eased to 2.0 percent in April from 2.7 percent in March for the lowest rate since February last year as food prices declined on a favorable situation in international food markets, the central bank said.
      Based on the current recovery of domestic demand and stable dynamics of food prices, including imports, NBKR said it expects inflation to remain moderate and within its 5-7 percent inflation target.
      The economy of the Kyrgyz Republic is continuing to benefit from growing aggregate demand based on a steady increase in remittances from abroad, rising real wages and growth among its trading partners.
      The economy expanded by an annual rate of 1.3 percent in the first quarter of this year, down from 4.5 percent in the fourth quarter of last year, and the central bank expects growth this year to remain close to its potential level.



Post a Comment