National Bank of Kazakhstan keeps base rate at 9.25 percent

The next decision on the base rate will be announced in March.
National Bank of Kazakhstan keeps base rate at 9.25 percent
28 January 09:38 2019 Print This Article

National Bank of Kazakhstan announced plans to keep the base rate at 9.25 percent with an interest rate band of +/- 1 percent, reported the bank’s press service on Jan. 14. Rates on operations for the provision and withdrawal of liquidity were also left unchanged at 10.25 and 8.25 percent, respectively.

The official refinancing rate remained at 9.25 percent, said bank Chairman Daniyar Akishev.

Annual inflation has continued at levels corresponding to the targets. In the absence of wind bow shocks, the current base rate level will ensure 4-6 percent inflation in the new corridor at the end of the year.

Risk assessment from the external sector has become a priority, as the bank set a task to prevent inflation from going beyond the target corridor.

The next decision on the base rate will be announced in March.

Inflation in 2018 remained within the target corridor of 5-7 percent, remaining unchanged at 5.3 percent in the last three months of the year.

“The growth of real incomes of the population was 4.4 percent in the 11 months. Raising the minimum wage and reducing the tax burden for low-wage workers will contribute to the expansion of domestic demand in 2019,” he added.

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