Kyrgyzstan cuts interest rates for first time since 2019

BISHKEK/NOV. 28 2022 (The Bulletin) — Kyrgyzstan’s Central Bank cut its interest rate for the first time since 2019 to 13% from 14% and said that it thought inflation was slowing.

Like other Central Banks in the region the Kyrgyz Central Bank has jacked up interest rates this year, from 8% to 14% by March, to combat price rises. But now it said that inflation has slowed to 14.5% from 15.4%. 

“It is expected that the slowdown in inflationary processes will continue in the next 2023,” the Kyrgyz Central Bank said.

The Kyrgyz Central Bank last cut its interest rate in May 2019 to 4.25% from 4.5%.

Its decision to cut interest rates also breaks from the policy of its larger neighbour, Kazakhstan, which is expected to raise interest rates again at a meeting on Dec. 5.


— This story was published in issue 530 of the Central Asia & South Caucasus Bulletin, on Dec. 4 2022

— Copyright the Central Asia & South Caucasus Bulletin 2022

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