ALMATY (Satrapia) — The National Bank of Kazakhstan (NBK) has increased its base rate to 9.25%, reports the financial regulator’s press service. On 15 July, the Bank of Kazakhstan had maintained the base rate at 9%.

Yerbolat Dosayev

According to NBK President Yerbolat Dosayev, in a briefing on Monday, “real inflation is above expectations and stood at 5.5% in August, inflationary pressure increased and pushed inflation at the upper limit of the target corridor to a level of 5.7% at the end of 2019.” According to him, growth accelerated in the first 7 months of 2019 and was higher than the Central Bank’s forecast at 4.2%, causing inflationary pressure on Kazakhstan’s economy.

The main inflation factor is the increase in domestic demand.

Dosayev said the external sector will have a negative impact on domestic prices. Oil prices are falling. Since the beginning of the year, the average price level has been $65 per barrel. The FAO Food Price Index has increased by 5.1% since the beginning of the year.

“Current monetary conditions are considered neutral”, said Mr. Dosaev.

Dosaev added that the base rate remains the main policy tool of NBK.

The next decision on the base-rate will be reported on October 28, 2019 at 5:00 PM.