Baku, Azerbaijan, Sept. 2
By Elena Kosolapova - Trend:
The National Bank of Kazakhstan has set the base rate - a one-day repo rate at 12 percent, the bank said Sept. 2.
"This interest rate is the main rate of the monetary policy," the statement said. "It is directed at managing the nominal rates of the monetary market rates and will be a key tool for monetary policy."
The interest rates of the National Bank will be used to keep inflation at the target corridor in connection with passing to a floating exchange rate of the national currency - tenge.
The National Bank will use the tools of the monetary policy to maintain liquidity on the monetary market in accordance with the target base interest rate. In case of excess liquidity on the monetary market, the National Bank will withdraw it. But in case of a lack of liquidity it will deliver it on an auction basis.
Moreover, the National Bank will provide the banks with the opportunity to use the permanent access mechanism to get liquidity at a rate of 12 + 5 percent and to place the deposits at the rate of 12 - 5 percent (12 percent - the base rate) in an unlimited volume.
"In the short term the National Bank expects an increase in inflation above the medium-term target level due to an increase in import prices due to the recent depreciation of tenge," the statement said. "In the medium term the current base rate is expected to reach the level of inflation within the 6-8 percent target range."
However, in case of increasing the inflation expectations, the National Bank will tighten the monetary policy by raising the base interest rate.
Edited by CN
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