The Atyrau bridge in Kazakhstan

Kazakhstan Monetary Policy April 2020

Kazakhstan: Central Bank stands pat in second April meeting

At an emergency meeting on 27 April, the National Bank of Kazakhstan left the base rate at 9.50% and the interest rate corridor at plus or minus 2.0 percentage points, after having delivered an emergency 250 basis point cut in their previous meeting earlier this month.

The challenging economic conditions posed by the Covid-19 pandemic and the crash in oil prices prompted the Bank to maintain a dovish bias and stand pat despite mounting price pressures. Inflation rose to 6.4% in March (February: 6.0%), exceeding the upper bound of the 4.0%–6.0% target corridor, amid a historic depreciation of the currency. At the same time, private sector conditions have deteriorated as the prolonged quarantine measures and depressed external demand take their toll.

Looking ahead, the Bank projects inflation to be in the range of 9.0%–11.0% this year before slowing in 2021. Meanwhile, despite the monetary and fiscal stimulus, economic activity is seen contracting provided current external demand conditions persist. The Bank will continue to carry monetary policy in a flexible manner to ensure financial stability.

The next meeting is scheduled for 8 June.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest