The National Bank of the Kyrgyz Republic left its benchmark interest rate unchanged at 12.0% at its July 27, 2026 meeting, maintaining tight monetary conditions to contain persistent inflationary pressures.
Inflation rose 6.5% since the start of 2026, with annual inflation reaching 11.3%, driven by higher food and fuel prices amid volatility in global commodity markets and heightened tensions in the Middle East. The central bank warned that risks to oil product supplies through the Strait of Hormuz continue to fuel imported inflation, while rising service costs have also been supported by tax reforms. Meanwhile, the economy remained resilient, with real GDP expanding 11.9% year-on-year, supported by strong domestic demand and robust investment, particularly in construction.
The bank reaffirmed that it will maintain restrictive monetary conditions to steer inflation toward its 5%–7% medium-term target and stands ready to tighten policy further if risks to price stability intensify.