ASTANA, Kazakhstan, August 25. The Monetary Policy Committee of the National Bank of Kazakhstan has decided to reduce the base rate by 25 basis points to 16.5 percent, the NBK said, Trend reports.
"Our new forecasts of inflation and economic growth have allowed us to draw key conclusions about the changing macroeconomic situation, which I want to share with you today. As those responsible for price stability, we consider it important to communicate our intentions and take prudent actions based on data and forecasts," Galymzhan Pirmatov, NBK Chairman, said.
According to Pirmatov, without taking into account the direct effect of the increase in utility tariffs, to which the National Bank does not respond with the base rate, the achievement of the medium-term goal of 5percent is expected by the end of 2025.
"The combination of tightening monetary conditions by central banks in the world and lower food prices has a restraining effect on domestic prices. However, inflation remains stable, leading to a shift in the timing of the start of rate cuts in developed countries. At the same time, there is an increase in inflationary pressure in Russia due to increased consumer demand and the weakening of the ruble," he added.
Meanwhile, on July 5, the NBK decided to keep the base rate unchanged at the level of 16.75 percent per annum with a corridor of +/- 1 percentage point.