In 2023, Kazakhstan successfully reduced inflation from 21% to 8.6%.
Timur Suleimenov emphasized that inflation expectations were set within the range of 7.5-9.5%, with the actual outcome being 8.6%.
“Our economy fell within the forecast, but of course, we would like to see better results,” noted the head of the National Bank.
He reminded that in 2023, inflation was above 21%, making the current decrease a positive outcome. The National Bank expects a further drop by one percentage point by 2025.
The base rate significantly impacts various factors, establishing the primary benchmark for loan and deposit rates, but its level is also influenced by other aspects such as funding costs and risks.
For instance, if inflation is anticipated to be around 13-15%, banks will be unable to offer low loan rates since money will lose its value due to inflation.
Additionally, the National Bank continues to develop operations with gold reserves, maintaining monetary neutrality.
The bank purchases gold from local producers (60-70 tons annually) and sells it abroad, which helps increase foreign currency reserves and stabilize the tenge exchange rate.
Timur Suleimenov also pointed out that the state cannot force banks to issue loans but can create favorable conditions.
This includes tax measures. One of the tools is the taxation of income from government bonds, which has made them less attractive compared to business lending.
“We are actually in good contact with the banks. As the president said, neither the government nor the people are enemies of the banks – they are part of our economy. We just need to ensure that we all work in a coordinated manner to promote economic growth and the well-being of the people,” he stated.
There was also discussion about utility tariffs, which have been kept low for a long time, leading to a lack of investment.
Suleimenov explained that short-term price regulation may be beneficial, but in the long run, it can hinder development. The “Tariff for Investment” program has already received 605 billion tenge, with plans to invest a total of 14 trillion tenge in the future.
Regarding digital technologies, it was mentioned that the National Bank is focused on their development, such as the QR payment system that simplifies transfers between banks without extra fees.
Currently, 7 banks are operating within this system, and there is a possibility that in the future, all banks may be required to participate.
Timur Suleimenov also discussed plans for the legalization of cryptocurrency.
He noted that this would help create a transparent system that can protect residents and monitor taxes.