ASTANA – The Monetary Policy Committee of the National Bank of Kazakhstan has reduced the base rate by 25 basis points, setting it at 14.25% with a corridor of +/- 1 percentage point, the bank’s press service reported on July 12.
Photo credit: kapital.kz
Annual inflation slowed to 8.4% in June, which aligns with the forecast trajectory. Lower inflation in food products and a slower pace of tariff reform implementation are the primary factors contributing to the reduced price growth.
The population’s inflation expectations remain volatile: they have decreased from the high levels observed in April but slightly increased in June due to a minor weakening of the exchange rate.
The external inflationary background is becoming less favorable, with global food prices gradually rising recently, particularly for vegetable oils and dairy products, after a significant decline the previous year.
Monetary conditions will remain moderately tight for an extended period to consolidate the trend of slowing price growth and achieve the inflation target of 5%. Notably, economic growth for January- May 2024 is estimated at 3.7% year-over-year.
