National Bank to aim at maintaining base rate level, says Yerbolat Dossayev
NUR-SULTAN. KAZINFORM - Yerbolat Dossayev, Governor of the National Bank of Kazakhstan, told a Government meeting in which case the financial regulator will tighten the monetary policy, Kazinform correspondent reports.
According to him, the National Bank will keep the inflation targeting regime with a focus on the maintenance of low inflation, as well as the sustainability of the country's economic development and the growth in living standards. The inflation target is to be defined.
It is proposed to keep the 4-6% corridor through 2021, and, starting 2022, to reduce it to 3-5% and maintain it in the long term.
"The National Bank will aim at maintaining the level of the base rate positive - in real terms in the range between 3% and 3.5%. If inflation risks move beyond the established target corridor, we can tighten the monetary policy," Yerbolat Dossayev said while delivering the 2019 report on the implementation of the Agreement between the Government and the National Bank on the Macroeconomic Policy Coordination Measures.
It should be mentioned that this agreement will establish the principles and key lines of joint activities of the Government and the National Bank to ensure sustainable economic growth and maintain a stable price level. The document defines 10 main tasks.