Kyrgyzstan decreases the base rate

The National Bank of Kyrgyzstan has reduced the size of the base rate from 14% to 13% due to lower inflation and commodity prices, according to an official statement on the regulator’s website.

This is the first time the country has decreased the base rate since May 2019.

The annual inflation in Kyrgyzstan in November reached 14.5%, a slight decrease compared to 15.4% in October. The regulator hopes that this slowdown of inflation processes will continue next year.

The National Bank is going to hold its next meeting over the size of the base rate on January 30, 2023.

Commodity prices have subsided in the second half of 2022 because of fears of global recession and the strong U.S. dollar.

The latest forecast from Goldman Sachs says that oil prices may decrease by $10 to $100 as concerns over Chinese economic growth and possible introduction of a price ceiling for Russian oil get stronger and stronger.

«A broader market is concerned over a growing number of reported cases of COVID-19 in China and uncertainty over the oil price ceiling that G7 can introduce very soon. And these concerns are not without reason,» the investment bank said.