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National Bank of Kazakhstan retains current base rate

Kazakhstan Materials 24 February 2023 10:27 (UTC +04:00)
National Bank of Kazakhstan retains current base rate
Emin Sevdimaliyev
Emin Sevdimaliyev
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BAKU, Azerbaijan, February 24. National Bank of Kazakhstan decided to retain the current base rate at the 16.75 level, Trend reports, citing the National Bank.

The current rate remains the most feasible choice due to a combination of external factors, including geopolitical uncertainty, remaining inflationary risks, and high food product prices around the world. Internal inflationary factors include increasing domestic demand, high inflationary expectations, and restructuring of logistics and production chains.

The National Bank added that while inflation in January increased to 20.7 percent, the trend recorded during the previous four months suggests that monthly inflation is decreasing from 1.8 percent in September 2022, to the current 1.1 percent.

The Bank cites decreasing inflation in major regional and global economies as one of the reasons, which will decrease inflationary pressure in Kazakhstan.

Considering the external and internal factors, the National Bank projects the inflation level to be around 9-12 percent in 2023, with a further drop to 6-8 percent in 2024. Kazakh inflation is forecasted to subside to 4-6 percent in 2025.

Earlier, it was reported that inflation in January amounted to 20.7 percent. The next decision on the base rate change by the National Bank of Kazakhstan will be revealed on 7 April.

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