IMF forecasts inflation in Kazakhstan to decrease to 12%

The International Monetary Fund predicts a decline in inflation in Kazakhstan. The inflation rate is expected to drop to 12 percent in 2023, according to the country’s financial and economic development review published on the financial institution’s website. As noted by the experts, the monetary policy implemented by the National Bank of Kazakhstan will allow for the achievement of a steady downward trend and the stabilization of inflation expectations this year. Nevertheless, inflationary pressures may necessitate maintaining the increased base rate for a longer duration than currently expected, IMF representatives say. It bears noting that National Bank of Kazakhstan Governor Galymzhan Pirmatov has recently stated that in the second half of the year, the financial regulator intends to consider the feasibility of reducing the base rate. According to him, the decision will largely depend on the correspondence of actual price growth with forecasted estimates and the stability of inflation amid rising prices for fuels and lubricants, and housing and utility services. It is worth noting that the National Bank’s May forecast projected that the annual inflation rate in Kazakhstan would range from 11 to 14 percent by the end of 2023 and from nine to 11 percent in 2024.