By CentralBankNews.info
Kyrgyzstan’s central bank left its policy rate at 5.0 percent and forecast that inflation should move toward its target range of 5.0 – 7.0 percent, in the absence of external and domestic inflation shocks, based on current dynamics in global commodity markets and growing aggregate demand.
The National Bank of the Kyrgyz Republic (NBKR), which has kept its rate steady since December 2016, added that maintaining the rate at this level will help stimulate the economy.
Kyrgyzstan’s inflation rate rose to 3.5 percent in February from 3.2 percent in January but NBKR said inflation had eased to 2.9 percent as of March 16 as food prices had slowed while the cost of coal, fuel and lubricants provided a positive contribution.
Economic output in the Kyrgyz Republic continues to be supported by steady remittances from abroad and higher wages, with higher output from the main sectors in the economy.
Gross Domestic Product grew by 2.7 percent in the January and February period, excluding the Kumtor gold mine. Including output from Kumtor, output grew 3.3 percent, the central bank said.
In 2017 Kyrgyzstan’s economy grew 4.5 percent, with remittances up 25 percent in U.S. dollar terms.
The situation remains stable on the domestic foreign exchange market, with the som appreciating 1.0 percent as of March 26 and the NBKR said it did not participate in the market.
Today the som was trading at 68.19 to the dollar, up 1.13 percent this year.