BAKU, Azerbaijan, Jun. 8
By Nargiz Sadikhova - Trend:
Kazakhstan’s National Bank made a decision to keep the base rate at 9.5 percent annual with interest corridor of plus/minus 2 percent points, Trend reports with reference to the National Bank.
The National Bank said that further decisions in the field of monetary policy will be based on the dynamics at the world commodity markets, the resumption of economic activity growth in the country, as well as the degree to which the actual dynamics of inflation deviates from the forecast path.
The National Bank said that it has revised its inflation forecast till the end of 2020.
“Within the Forecast of Socio-Economic Development of Kazakhstan for 2020-2024, which suggested a scenario of oil prices being $20-25 per barrel and was considered by the Government as the basis for the goals of the anti-crisis plan, inflation was estimated at 9-11 percent till the end of the current of the year. In accordance with the updated estimates for the oil market and the base scenario of the National Bank, which assumes an oil price of $35-40 per barrel on average in 2020, annual inflation is projected at 8-8.5 percent in 2020,” the report said.
The report said that the inflationary expectations of the population remain relatively stable.
“The introduction of a state of emergency and quarantine measures in March to combat the COVID-19 pandemic caused a significant deterioration in economic activity. Aggregate demand in 2Q2020 remains restricted, curbing inflation. Estimates for the growth prospects in 2020 of the countries trade partners of Kazakhstan remain negative,” the National Bank emphasized.
The current account of the balance of payments was formed with a surplus of $1.2 billion in 1Q2020 the preliminary estimates said, as a result of high oil production and relatively high futures prices for oil formed in the 4Q2019.
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