IMF Backs Kazakhstan's National Bank Vow To Effect More Stringent Monetary Policy

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 30. The monetary policy stance of Kazakhstan's National Bank, aimed at reducing inflation risks, is a step in the right direction, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), said during an online briefing, Trend reports.

He believes that inflation was a thorn in the side of the economy last year, fueled by a mix of homegrown issues and outside influences.

“Certain inflationary pressures were externally derived, encompassing escalations in pricing from Russia and the fluctuations noted within the oil and gas sectors,” he articulated.

The IMF delegate underscored the imperative of prioritizing inflation mitigation strategies for Kazakhstan, aiming for a systematic reduction towards a normative baseline of approximately 5 percent.

“The National Bank of Kazakhstan has implemented a series of strategic interventions to mitigate inflationary pressures, and we endorse the recalibration of monetary policy by the regulatory authority.” It is imperative that the regulatory bodies maintain a steadfast commitment to the management of inflationary pressures,” Azour articulated.

To note, the Monetary Policy Committee of the National Bank of Kazakhstan decided to raise the base rate to 18 percent per annum from 16.5 percent. Annual inflation accelerated to 12.9 percent in September, up from 12.2 percent in August.

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