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Base rate of Kazakhstan's national bank decreases

Business Materials 15 January 2018 18:12 (UTC +04:00)

Baku, Azerbaijan, Jan. 15

By Ali Mustafayev - Trend:

The National Bank of Kazakhstan reduced the base rate to 9.75 percent with a +/- 1 percent symmetrical fluctuation corridor, the press service of the National Bank said in a message.

Rates on operations of providing liquidity to banks amount to 10.75 percent, as well as rates for liquidity withdrawal operations amount to 8.75 percent, said the chairman of the National Bank Daniyar Akishev during a press conference.

For the first time since the introduction of the base rate, its level has reached a single value.

"In January 2017 the base rate was 12 percent. The decision to reduce the base rate is due to the positive results of 2017 and the expectations of the favorable development of the economic situation in 2018. It confirms the National Bank's confidence in maintaining inflation within the new target corridor of 5-7 percent in 2018 and in the gradual achievement of the medium-term target of 4 percent in 2020," Akishev said.

The head of the financial controller stressed that the National Bank does not exclude further reduction of the base rate in 2018.

"The easing of monetary policy will continue if the terms of trade and the situation in the partner countries of Kazakhstan remain positive, the trends that helped improve the situation in the economy of Kazakhstan in 2017 will continue in the current year, and in general, the forecast and actual dynamics of inflation will correspond to each other."

The next decision on the base rate will be announced on March 5, 2018.

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