BAKU, Azerbaijan, June 8
Trend:
The National Bank of Kazakhstan maintained the base rate at 9 percent on June 7, Trend reports referring to Kazinform.
The bank’s Deputy Chairman Akylzhan Baimagambetov spoke about reasons for the maintenance despite certain expert opinions on the need to increase it.
According to Baimagambetov, at present the effect of pro-inflationary factors in the economy really is prevailing. External inflationary pressure is due to the growth of world food prices and the acceleration of inflation in the countries - trade partners of Kazakhstan.
He said that in the domestic sector, the main influence on the speed-up of inflation is exerted by the growth of prices for fuels and lubricants and the increase in tariffs of energy producing organizations.
"In this regard, pro-inflationary factors amid instability of inflationary expectations increase the probability of secondary inflationary effects and thus the general inflationary background, which may slow down the decline in inflation,” the official noted. “Nevertheless, next year we expect the effects of domestic pro-inflationary factors to exhaust and external inflationary pressure to weaken."
Thus, the national bank decided to keep the base rate at 9 percent. This level of the rate still allows maintaining control over inflation and ensuring its systematic reduction in the medium term.
"The national bank is closely monitoring the situation in the external sector and the domestic economy, and in case of further sustained pressure from pro-inflationary factors and slower disinflation compared to forecast estimates, it will be ready to raise the base rate," stressed Baimagambetov.