Investor Presentation on Kazakhstan's Economic Reforms
19
National Bank Rate
(%)
14%
13%
12%
11%
10%
9%
8%
7%
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Source: National Bank of Kazakhstan
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Monetary and Exchange Rate Policies
Kazakhstan's flexible exchange rate acts as a shock absorber for the economy and together with the inflation targeting
regime raise policy buffers and support economic resilience.
Overview and current situation
•
•
Kazakhstan's free floating exchange rate policy is consistent with its inflation targets.
As part of its transition to the inflation targeting regime in September 2015, NBK
introduced the base rate to promote price stability.
In March 2020, the base rate was increased to 12.0% to prevent the spread of the
consequences of the external COVID-19 induced shock to the country's economy
and to protect tenge assets. Afterward, the base rate was reduced In April to 9.5% to
smoothen the negative consequences of the coronavirus and to support business
activity. The base rate was reduced to 9% in July, as inflation has stabilized around
7%. At the last two decisions on September 7 and October 26, 2020, the National
Bank left the base rate unchanged.
The Tenge in 2020
(US$/KZT, US$)
450
440
430
420
410
400
390
380
370
65
55
45
35
25
22
15
Dec Jan Feb Mar Apr
May
Jun
Jul Aug
Sep
⚫USD/KZT
Brent (right axis)
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
9%
8%
7%
9.0%
៖៖៖៖
4%
3%
6%
5%
Dec-17
Feb-18
Apr-18
Inflation Rate
(CPI, Annual % Average)
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
7.0%View entire presentation