4vlastinfo

Kazakhstan's National Bank lowers the base rate to 14.25%

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.

In June, annual inflation decelerated to 8.4%, following the expected trajectory. This slowdown can be attributed to reduced price increases in food items and a slower implementation of tariff reforms. Although inflation expectations among the population have moderated compared to April, they saw a slight uptick in June, influenced by a minor depreciation of the exchange rate.

Internationally, there's a less favorable external inflationary environment, with global prices for food items, especially vegetable oils and dairy products, gradually rebounding after a significant decline last year.

To sustain the trend of easing price growth and achieve the 5% inflation target, monetary conditions will remain moderately tight for an extended period. Notably, economic growth for January-May 2024 stood at 3.7% year-on-year.(Source:astanatimes)