The BOD of the Central Bank at its July 25, 2024 to cut the interest rate by 0.5 percent to 13.5 percent per annum, the Bank said today.
Downward trend of the basic inflation continued and was equal to 5.9% in June and decreased by 2.6% year-to-date. This is reportedly due to the secondary effect of the change in energy prices was lower than expected, pointing to the continuation of the downward trend of inflation in the future.
In Q II quarter of this year, there was a significant increase in the flow of currency to the economy through various channels, which had a positive effect on the stabilization of the soum exchange rate.
Although the indices of economic activity and business mood showed a relative downfall in the last two months, the overall results are still positive.
The inflation forecast has been revised downwards due to the lower than expected trend of basic inflation and the impact of inflationary factors this year. At the end of the year, the annual inflation is expected to be around 9 percent (the April forecast was 9-11 percent) and at the end of 2025, it is expected to approach the target level of 5 percent.
