FX.co ★ Kyrgyz Central Bank Hikes Key Rate Again

The National Bank of the Kyrgyz Republic increased its key interest rate by 100 basis points to 11.00% during its meeting on November 24, 2025. This adjustment marks the second consecutive rate hike, resulting in the highest borrowing cost since April 2024. The decision is intended to address ongoing inflationary pressures attributed to rising global food prices, increased fuel and electricity costs, and strong domestic demand. As of now, inflation has reached 7.3% on a year-to-date basis and 8.9% annually. Non-food prices have been impacted by elevated import costs, whereas food inflation has remained relatively moderate. Economic activity within the country continues to be robust, with real GDP expanding by 10% from January to October. This growth has been driven by the services sector, construction, and industry, along with rising wages, remittances, consumer loans, and investments. The central bank highlighted the significance of external risks—such as fluctuating energy prices, global food inflation, and pressures from partner countries—which justify a more stringent monetary policy stance. The next policy meeting is slated for January 26, 2026.