Money in Kazakhstan
Kazakhstan - Money
Central Bank cuts the rate by 25 basis points in April meeting
At its latest monetary policy meeting held on 15 April, the National Bank of Kazakhstan opted to cut the rate by 25 basis points to 9.00%, with an interest rate corridor of plus or minus 1.0 percentage point, following a six-month hold. In a move that was largely expected by analysts, the rate was trimmed after the newly-instated President Kassym-Jomart Tokayev mandated the availability of cheaper credit.
With inflation trending downwards and inflation expectations also falling, the Bank had some space to ease monetary conditions in a bid to accelerate the pace of growth. Inflation remained at an over three-year low of 4.8% in March, with lower fuel costs and softer upturns in the prices for paid services keeping overall price pressures subdued. Meanwhile, economic activity grew at a softer stride, on average, in the first two months of 2019, compared to the previous quarter. A downturn in the manufacturing sector, largely due to China and Russia’s slowdown, caused overall activity to weaken. The economy is also grappling with lower oil production—due to maintenance works at the Kashagan, Karachaganak and Tengiz oil fields—which has constrained oil revenues.
Looking ahead, while the accompanying statement was devoid of forward guidance, future decisions will be guided by the trajectory of inflation relative to the 4.0%–6.0% target band and the Bank’s forecasts, along with overall economic conditions and external factors.
The next meeting is set for 3 June 2019.
Met the why particular panelists see the base rate ending 2019 at 8.89%. Going forward, the Central Bank is expected to continue trimming the interest rate, and our panelists see the rate ending 2020 at 8.34%.
Kazakhstan - Money Data
|Money (annual variation of M2 in %)||1.5||-8.2||7.9||46.1||7.5|
5 years of economic forecasts for more than 30 economic indicators.
Kazakhstan Money Chart
Source: National Bank of Kazakhstan
|Exchange Rate||379.5||0.32 %||May 13|
|Stock Market||0.1||0.0 %||May 13|
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May 17, 2019
The industrial sector decelerated notably in April, growing 1.9% over the same day last month.
May 6, 2019
A recently-released breakdown of GDP by expenditure confirmed that the economy grew 4.1% in 2018, thus sustaining the solid pace of expansion logged in the January–September period, in which the economy also expanded 4.1% year-on-year.
May 2, 2019
Consumer prices increased 0.5% over the previous month in April, matching March’s print.
April 15, 2019
Industrial production grew 4.2% year-on-year in March, up from February’s 3.5% expansion.
April 15, 2019
At its latest monetary policy meeting held on 15 April, the National Bank of Kazakhstan opted to cut the rate by 25 basis points to 9.00%, with an interest rate corridor of plus or minus 1.0 percentage point, following a six-month hold.