BAKU, Azerbaijan, Oct. 26
By Nargiz Sadikhova – Trend:
Kazakhstan’s National Bank has made a decision to keep the base rate at 9 percent annual, at the same time maintaining the percent corridor at plus/minus 1.5 percent points, Trend reports citing Kazakhstan’s National Bank.
Thus, the rate on standing access operations to provide liquidity will be 10.5 percent and on standing access operations to withdraw liquidity - 7.5 percent.
Following the end of September 2020, annual inflation is below the National Bank's expectations at the level of 7 percent. Inflation expectations in September 2020 decreased, and core inflation indicators have stabilized.
Since the beginning of the year, the real sector has been showing the expected decline, while the recovery continues. In turn, Kazakhstan's GDP also contracted in accordance with forecasts by 2.8 percent over nine months of 2020.
The National Bank said that fixed investment of Kazakhstan declined 4.9 percent over nine months of 2020, reflecting the impact of COVID-related shocks.
Actual money incomes of the population continued to decline in August 2020, while the growth of real wages slowed down. The annual decline in real cash income was 2.5 percent during the reporting period.
Following the end of nine months of 2020, the current account of the balance of payments is expected to move into negative, the bank’s forecast said.
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