Kyrgyzstan's central bank becomes more explicit on risks, outlook

The National Bank of Kyrgyzstan used explanatory words in its upgraded, much more explicit public statement on monetary policy.

Quite a difference compared with the previous statement from December.

The NBKR now explains what it sees as key risks and uncertainties for inflation:

The National Bank continues to identify further risks to the inflation outlook. Inflation expectations and the impact of uncertain dynamics of foreign trade relations within the EEU on import prices pose uncertainty for the inflation outlook. Acceleration of inflationary processes is also possible due to price volatility in food prices.

And the Kyrgyz Republic's central bank provides a forward-looking statement about the most likely future course of policy to achieve its medium-term inflation guideline:

Keeping the current monetary policy rate unchanged is appropriate to sustain the inflation at the level of 5-7 percent over the medium term, as determined by the NBKR’s main monetary policy guidelines.

The National Bank intends to maintain the current policy stance for the foreseeable future...

I have just spent a few days in Bishkek and am happy to see a tangible progress in bringing the local central bank's communication outputs closer to the central banking best practice.