Baku, Azerbaijan, June 4
By Ali Mustafayev – Trend:
The National Bank of Kazakhstan reduced the base rate to 9 percent, the press service of the financial controller said in a message.
"The National Bank of Kazakhstan decided to reduce the base rate, while maintaining a symmetrical corridor of interest rates at +/- 1 percent. The rates for liquidity provision and liquidation operations have been reduced to 10 percent and 8 percent, respectively," chairman of the National Bank of Kazakhstan Daniyar Akishev said at a briefing.
He added that the official refinancing rate has also been reduced to 9 percent following the level of the base rate.
This decision was due to the continued decline in the annual inflation and inflation expectations of the population, as well as, favorable trends in world oil markets, according to the National Bank.
Annual inflation in Kazakhstan in May 2018 continued to decline within the target corridor and amounted to 6.2 percent. After an increase to 6.3 percent in April, in May the inflation forecast for the year decreased to 6 percent.
Since early 2018, Kazakhstan’s inflation forecast has decreased by 1.1 percentage points, outpacing the decline in inflation.
"The new level of the base rate, according to our estimates, will contribute to maintaining inflation within the target corridor for the current year and the next year, as well as, achieving a medium-term inflation target of 4 percent by the end of 2020," Akishev said.
The next decision on the base rate will be announced by the National Bank of Kazakhstan on July 9, 2018.
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