BISHKEK, Kyrgyzstan, August 16. The Eurasian Development Bank (EDB) anticipates that the National Bank of Kyrgyzstan could lower the interest rate to 12 percent by the end of 2023, Trend reports.
"We expect inflation in the country to slow down in the autumn, and against this backdrop, the National Bank of Kyrgyzstan might start a round of interest rate reduction," the representatives from EDB said.
As of July 31 of the current year, the National Bank kept the interest rate at 13 percent.
EDB claims that the rise in administratively regulated tariffs and consumer activity, notably a remarkable year-over-year trade growth of 17.8 percent from January to June 2023, were factors in the decision to maintain the existing rate.
According to EDB, Kyrgyzstan's annual inflation rate decreased from 10.5 percent in June to 10.3 percent in July 2023.
The annual GDP growth in Kyrgyzstan reached 2.9 percent from January through July 2023, showing a decrease compared to the growth of 3.9 percent during the January-June period.
