National Bank of Kazakhstan keeps interest rate at 9.5%

National Bank of Kazakhstan keeps interest rate at 9.5%
The National Bank of Kazakhstan made a decision to keep the interest rate at 9.5 percent with a percentage corridor of +/-2 percent.
The global economy experiences a recession amidst coronavirus spread. According to the latest data of the International Monetary Fund, the global economy is expected to be dropped by 3.0 percent, including Kazakhstan’s trade partner countries. European Union’s economy is predicted to drop by 7.5 percent, Russia’s by 5.5 percent, while China’s economy will slow down by 1.2 percent.
Fixed investments growth in Kazakhstan has slowed to 5.1 percent from January to March, compared to 11.6 percent from January to February, reported financial regulator. The National Bank assessed that measures taken by the state to support incomes and employment will stimulate aggregate demand. This will contribute to the gradual recovery of economic activity.
Further decisions on the interest rate will be taken on June 8, based on the pace of economic recovery, the balance of inflation risks, the level of aggregate demand and measures to ensure financial stability.