National Bank has left the discount rate unchanged - 6 percent, its site informed.
According to it, previously taken measures in the monetary sphere continue having an impact on reduction of inflation in the Kyrgyz Republic. In August, the annual inflation rate was 0.5 percent, having gone down from 3.4 percent since the beginning of the year. In the domestic foreign exchange market in some periods of August there was a slight excess demand for foreign currency over its supply.
The main decline in prices was observed in the group of food products on the background of growth of production in the agriculture of the country, the favorable situation with grain market in Russia and Kazakhstan and world food markets. Relatively low domestic demand continues to restrain consumer prices in the country.
It is noted that the economy is corrected in the positive direction. In January-July 2016 the real GDP fell by 1.2 percent, whereas in the first half 2016 figure was 2.3 percent. Without Kumtor the economy grew by 1.6 percent.
Economic growth is limited by significant reduction of production in the manufacturing industry, mainly by a decrease in production at Kumtor enterprises, and weak demand for domestic products.
"Therefore, taking into account the inflation forecast in the medium term, the National Bank kept the size of the discount rate. Amid the low inflation risks this will provide further assistance for stimulation of the real economy," the National Bank says.
The next meeting of the Board of the National Bank on discount rate is scheduled for September 26, 2016.