NUR-SULTAN – The Kazakh National Bank’s monetary policy committee has decided to keep the base rate at 14.5 percent per annum with a corridor of +/- 1.0 percentage points amid an adverse economic situation in the region, reported the bank’s press service on Sept. 5.
The decision is driven by the increasing prices of logistics services, high inflation in trading partner countries, including China and Russia, and the weakening of the Kazakh tenge against the Russian ruble.
Kazakhstan’s gross domestic product (GDP) is projected to slow down to 2.5 – 3.5 percent due to the scheduled repairs at the country’s major oilfields and the limited operation of the Caspian Pipeline Consortium (CPC) pipeline with reduced volumes.
According to the report, the International Monetary Fund (IMF) expects a decrease in the global economy from 6.1 percent in 2021 to 3.2 percent in 2022 and 2.9 percent in 2023. For comparison, the IMF’s previous forecast for 2022 – 2023 was 3.6 percent.
The next scheduled decision of the monetary policy committee on the base rate is expected to be announced on Oct. 5.