The National Bank of Kyrgyzstan has published its Monetary Policy Report for the second quarter of 2025, noting that while the country’s economy is growing rapidly, inflationary pressures are intensifying, Akchabar.kg reports.
In the first half of the year, real GDP increased by 11.4%, driven by construction, services, and industry. Growth was further supported by rising household incomes and a 26.2% increase in remittances from abroad.
However, inflation, which remained within the target range early in the year, began to accelerate in May, reaching 8% in June. Forecasts now put year-end inflation at 8.5–9%. The main drivers are higher food and fuel prices—most of which are imported—as well as rising inflation in key trading partner countries.
The base rate stood at 9% in the second quarter and was raised to 9.25% in July. The National Bank stated it aims to keep inflation within the 5–7% range in the medium term.
CentralasianLIGHT.org
September 4, 2025