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Kazakhstan's National Bank Expects 8% Inflation Rate In 2017

Thursday, January 12, 2017 - 06:49

Despite the fact that Kazakhstan's 2016 results demonstrated an inflation rate that exceeded the previously set corridor, it is expected to reach the target parameters within the next two months. According to the press release of the National Bank of the Republic, there increases the probability of further easing of the country's monetary policy. During a recent briefing, Head of the National Bank Daniyar Akishev explained that in the period January-November 2016, the short-term economic indicator that reflects the development of the basic economic sectors amounted to 100.5 percent.


However, although there is a definite positive trend in the economic activity, Akishev recognizes the risks of external shocks that bear potential risks for the country's economic development.


Akishev also forecast the inflation rate in Kazakhstan at the end of 2017. According to him, the indicator will be in the range of 7.3 to 7.7 percent.


“According to the latest surveys, the population's inflation expectations decline. The fears of respondents regarding a significant rise in prices during December 2016 did not materialize. In addition, the respondents do not expect the inflation processes to accelerate in the future. Finally, many of the fundamental factors speak in favor of the potential for further strengthening of the tenge,” the head of the National Bank said.


Daniyar Akishev also added that the annual inflation rate was 8.5 percent at the end of 2016, as previously expected.


“According to the current estimates of the National Bank, in January and February the inflation rate will enter the target corridor. In the following months of 2017, there will be no significant decrease in inflation; however, in the absence of negative shocks, it will remain within the target corridor,” Akishev stated.

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