FX.co ★ Kyrgyz Central Bank Holds Key Rate at 12%

The National Bank of the Kyrgyz Republic kept its benchmark interest rate unchanged at 12% at its April 27, 2026 meeting, maintaining the highest borrowing costs since March 2024 in an effort to curb rising inflation. Consumer prices have increased by 3.9% since the start of 2026, with annual inflation reaching 11.3% as of April 17, driven by higher prices for food, non-food goods, and especially services. The central bank cited rising global prices for cereals, vegetable oils, and energy amid escalating tensions in the Middle East, as well as elevated inflation in key trading partners and higher logistics costs, as persistent sources of imported inflation. Domestically, demand remained robust, supported by wage growth and remittance inflows, while real GDP grew by 10.1% year-on-year in January–March. Although relatively stable exchange rate dynamics have helped anchor inflation expectations, the bank stressed that tight monetary conditions are still needed to bring inflation back to its 5–7% target range. The next policy meeting is scheduled for May 25, 2026.