ASTANA, Kazakhstan, August 29. The income of the National Fund from asset management by the National Bank of Kazakhstan over the first seven months of this year amounted to $4.6 billion, said Chairman of the National Bank Board Timur Suleimenov at a briefing, Trend reports.
He pointed out that after seven months in the saddle, the National Bank raked in $4.6 billion by steering the National Fund, boasting a return of 8 percent in dollars.
"There are no losses from investment income in the National Fund; on the contrary, for the third consecutive year there has been quite a high investment income from managing the National Fund, which helps the National Fund to increase its assets," said Suleimenov.
Additionally, it was noted that when forming budget forecasts, the National Bank proceeds from a conservative scenario, under which the investment income is projected at 1 trillion tenge (approximately $1.9 billion).
"One trillion tenge (about $1.9 billion) is a small amount. Last year we earned $4.6 billion; if you calculate, that is much more—about three trillion tenge (approximately $5.7 billion). Given that the historical average income the National Fund received was 3.7-3.8 percent, we are laying down a lower figure," explained Timur Suleimenov.
Today, the National Bank made a decision on the base rate. It remained at the previous level—16.5 percent per annum with a corridor of +/- 1 percentage point. The decision was made after updating forecasts for key economic indicators and analyzing risks to inflation, the National Bank explained.
Nonetheless, should inflationary pressures fail to decelerate markedly in the forthcoming months, the National Bank may implement a contractionary monetary policy stance. Previously, analysts posited that the monetary authority would maintain the benchmark interest rate in light of the ongoing elevated inflationary pressures.
