Kyrgyzstan central bank holds policy rate at 12%
This digest was compiled by AI from multiple sources — links to the originals are below.
The National Bank of Kyrgyzstan kept its policy rate at 12% on August 25, 2026. The decision takes effect immediately. The bank cited external conditions, including geopolitical tensions and volatile global commodity prices, as the main driver of domestic inflation.
Key Facts
- The National Bank of Kyrgyzstan kept its policy rate at 12% on August 25, 2026.
- Consumer prices rose 7.3% since the start of 2026, with annual inflation at 11.7%.
- Food prices increased 6.3%, non-food goods 5.8%, and services 11.1% year-to-date.
- Real GDP grew 11.1% in January-July 2026, supported by investment and domestic consumption.
Rate Decision
The National Bank of Kyrgyzstan's board decided on August 24, 2026, to keep the policy rate at 12%. The decision took effect on August 25, 2026. Deputy Chairman Azat Kozubekov announced the decision on August 25, 2026.
Inflation Drivers
The central bank said external conditions remain the main factor determining price dynamics in Kyrgyzstan. Geopolitical tensions, including the Middle East conflict, and volatile global commodity prices affect the cost of imported goods. Rising fuel and lubricant prices have become a notable channel of external influence, raising transport and production costs. Domestic factors influence service price dynamics, which rose 11.1% since the start of the year.
Economic Activity
Economic activity remains high, with real GDP growth of 11.1% in January-July 2026. Growth is supported by high investment activity, mainly in construction, and rising domestic consumption. Higher household incomes and expanding lending support consumption and form stable domestic demand.
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