New base rate level to increase demand for assets in Kazakh tenge
Baku, Azerbaijan, Oct. 25
By Rashid Shirinov – Trend:
The new base rate level will increase demand for tenge assets and maintain acceptable monetary conditions, Chairman of the National Bank of Kazakhstan Daniyar Akishev said, according to Kazakh media.
He reminded that in order to prevent an increase in future inflation, on October 15 the National Bank decided to raise the base rate from 9 to 9.25 percent.
Akishev noted that inflation for January-September 2018 was 3.3 percent, which is lower year-on-year. Annual inflation in September fell to 6.1 percent compared to 7.1 percent at the end of the last year.
"According to the National Bank estimates, in 2018 inflation will remain in the target corridor of 5-7 percent, and in 2019 it should be near the upper bound of the new lower target corridor of 4-6 percent," Daniyar Akishev said.
Meanwhile, the tenge rate in the foreign exchange market weakened by 10.1 percent to 365.82 tenge per US dollar since the beginning of the year to October 24.
According to preliminary data, gold and foreign exchange reserves of the National Bank amounted to $30 billion at the end of September, assets of Kazakhstan National Fund – to $56.3 billion, and total international reserves – to $86.4 billion.
Akishev also stressed that the lending market continues to recover. The volume of new loans issued for the first 9 months of this year increased by 25.8 percent, or 2 trillion tenge, compared to the same period last year.
The official exchange rate on October 25 is 365.82 KZT/USD.