Central Bank Holds at 13.5% and Flags Possible Tightening

The policy rate was maintained at 13.5% per annum. Annual headline inflation eased to 10.0% in November.

At the 12 December meeting, the policy rate was maintained at 13.5% per annum. Annual headline inflation eased to 10.0% in November.

Core inflation remained around 7.0% over the preceding four months. Household and business inflation expectations rose to 13.7% and 12.7%, respectively, in November. The central bank said it could raise the rate if demand and price pressures intensified.

The decision ended the year with a cautious signal and highlighted upside risk to 2025 soum borrowing costs, but a possible tightening step was not a pre-committed action.

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