The National Bank of Kazakhstan lowered the base rate to 16.5%
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The National Bank of Kazakhstan lowered the base rate by 25 bp. up to 16.5%, reported on the regulator’s website.
“Now we are seeing the effects of the gradual increase in the base rate last year, which affect the economy. As a result, inflation is gradually decreasing. This increases confidence in our estimates and reinforces the trend towards inflation stabilization,” said Galymzhan Pirmatov, Chairman of the National Bank.
According to the results of July, the annual inflation in Kazakhstan decreased to 14%, and the growth of prices for the commodity part slows down the most, while for services, inflation, on the contrary, accelerated. Monthly inflation accelerated to 0.6% last month.
At the same time, the regulator notes the persistence of pro-inflationary pressure from the expanding fiscal stimulus, domestic demand, as well as high and unstable inflationary expectations of the population. So, on the annual horizon, citizens expect prices to rise by 16.9%.
The National Bank expects that by the end of 2023, inflation in Kazakhstan will be 10-12%, dropping to 7.5-9.5% next year and to 5.5-7.5% in 2025.
How notes Nur.kz, this is the first rate cut by the regulator since July 2020.
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