Central bank does not rule out inflation rise in October

ASTANA. KAZINFORM Coordinating the monetary and fiscal policies of the state is the key factor to ensure the economic stability in current conditions, Chairman of the National Bank of Kazakhstan Daniyar Akishev told a plenary session in the Majilis of the Kazakh Parliament, Kazinform correspondent reports.

Daniyar Akishev highlighted that the National Bank, together with the Government, agreed upon the updated forecasts of the country's economic development for this year and the mid-term, which provided the basis for the draft Law "On the Introduction of Amendments and Additions to the Law of the Republic of Kazakhstan "On the Republican Budget for 2017-2019".

"From January to September 2017 the inflation rate reached 4.2%. In September, it was 7.1% year on year. However, the National Bank sees the risks of rising in October because of the increase in prices for gasoline, coal, and vegetables, while the markets have supply and demand imbalances. Nevertheless, according to the current year results, the inflation rate will remain within the target corridor of 6-8%," Daniyar Akishev assured.

According to him, the base interest rate, being the major indicator of the value of money, is gradually declining: from 12% to 10.25% this year.

"In October, the foreign exchange market stabilized. As of October 31, the exchange rate was KZT334.71 per $1. The strengthening of tenge for the month reached 1.9%, whereas the weakening since the beginning of the year was insignificant, 0.4%," Daniyar Akishev added.