BAKU, Azerbaijan, April 4. We believe that in 2023, inflation in Kazakhstan will slow down - even in the worst-case scenario, a source at the Renaissance Capital told Trend.
The inflation rate is expected to subside to 9.1 percent in 2023, with an additional drop to 5.5 percent in 2024. Prices on domestic markets are also expected to decrease as inflation decelerates.
The representative of the London-based investment bank said cited the tight monetary policy of the National Bank, which should filter into the economy through 2023 as the primary reason for the reduction of inflation.
The representative, however, notes that the inflation targets are expected to be reached later than expected.
“We do not expect inflation targets to be reached until 2025. Among factors that may impede the reduction of inflation in Kazakhstan are persistently elevated inflation expectations, steady consumer demand, and a depreciation of the national currency,” she noted.
Renaissance Capital's representative concluded by saying that supply-side inflationary factors to fade in 2023, while demand factors should ease, though remaining in place.
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.