BAKU, Azerbaijan, January 25. Kazakhstan’s high inflation is expected to start decreasing in 1Q2023 and drop below 10 percent in 4Q2023, Renaissance Capital told Trend.
Renaissance Capital projects inflation to decelerate further to 6 percent in 4Q2024. Consequently, the base rate is expected to follow suit.
“With this in mind, we expect the base rate to begin to decrease as early as 2Q2023 and reach 11 percent and 8 percent in 2023 and 2024,” according to the investment bank.
Renaissance Capital notes, however, that risks for the forecast are associated with a potential transition from price control for fuel and other socially important goods to subsidizing certain categories of consumers.
Renaissance Capital is one of the leading investment banks in emerging frontiers with a special focus on Russia & CIS, Central & Eastern Europe, Africa, and MENA.