Kazakh National Bank raises base rate to increase activity of tenge

16 October, 2018, 15:56 498
Kazakh National Bank raises base rate to increase activity of tenge

Daniyar Akishev assured that inflation would be kept within the corridor of 5-7% in 2018. 

 

In 2019 inflation will decline slowly, the Chairman of the National Bank of Kazakhstan, Daniyar Akishev, said, BNews.kz correspondent reports. 

According to Daniyar Akishev, inflation for January-September 2018 has made up 3.3%, which is below the figure of the given period of the past year. 

"In September annual inflation has decreased up to 6.1% compared to the figure of the end of the previous year (7.1%). As the National Bank estimates, this year inflation will keep within the targeted corridor from 5 to 7%. In 2019, inflation will decline slower than the National Bank has earlier estimated and will be formed near the upper limit if the targeted corridor at 4-6%. It is connected to the increase in uncertainty of inflation expectations caused y external and internal factors," said the National Bank's Chairman. 

"Following the survey among the population in September, the level of inflation expected one year ahead, made up 6.4%, compared to July's figure of 5.6%. Inflation expectations are still unstable in a short period in spite of the decreasing trend in a long-term period," said Akishev. 

In addition, actions to keep inflation within the targeted corridor in 2019 should be taken so to increase manageability of inflation. 

On October 15 the National Bank took a decision to increase the base rate from 9% to 9.25%. The new base rate will enable to increase the demand for tenge's assets and to maintain the admissable monetary and credit conditions.