Monetary policy transmission mechanism: impact of changes in the key interest rate on the cost of loans

The article is devoted to the study of the key interest rate and its impact on the cost of loans. The central bank influences the country's economy through interest rates, as a monetary transmission tool. In the context of lower interest rates, enterprises are able to attract more affordable loans to finance their activities, which stimulates investment activity and contributes to economic growth. The purpose of the study is to study the methodological aspects of the impact of changes in the key interest rate on the cost of borrowed resources for business, taking into account the experience of the Kyrgyz Republic, as well as to develop recommendations for increasing the availability of credit resources for entrepreneurial activity. This study presents a comprehensive analysis of the monetary policy transmission mechanism, which makes it possible to assess the degree and nature of the impact of changes in the key rate on lending conditions in various sectors of the economy. An analysis of the impact of changes in the key interest rate on the formation of the loan price is also presented using the example of the main trends in the development of the banking sector in the Kyrgyz Republic.