ASTANA – Kazakhstan’s National Bank sees room for further monetary policy easing as inflation continues to slow, while the tenge remains resilient despite lower interest rates and declining global oil prices, National Bank Governor Timur Suleimenov said on the sidelines of the Senate on June 18.
Timur Suleimenov. Photo credit: Prime minister’s press service Suleimenov noted that inflation, which peaked at around 30%, has fallen to near 10%, creating conditions for a gradual adjustment of monetary policy. He stressed, however, that the bank would proceed cautiously due to ongoing global and domestic uncertainties, reported Kazinform.
“Positive results in the fight against inflation have accumulated. We have already taken a significant step by lowering the base rate from 18% to 17%. If the right conditions continue to develop, we will naturally continue this policy,” he said. The National Bank cut the base rate to 17% on June 5, citing slower inflation while maintaining a moderately tight monetary stance.
Suleimenov also dismissed concerns that the rate cut would weaken the national currency. According to him, the tenge has remained stable, trading at around 487-488 per U.S. dollar despite expectations that lower rates could reduce the attractiveness of tenge-denominated assets.
He added that the currency had also shown resilience following a decline in global oil prices, which fell after signs of de-escalation in tensions between the United States and Iran. According to Suleimenov, market participants continue to view Kazakhstan’s economy as stable and recognize the government’s commitment to controlling inflation and supporting sustainable, inclusive growth, helping underpin confidence in the tenge.
He also outlined plans to enhance the long-term returns of the National Fund by shifting its asset allocation toward higher-yield investments, including equities and alternative assets. The National Bank also developed a program to invest up to $1 billion from the National Fund into high-technology sectors of Kazakhstan’s economy.
In addition, the country has launched a National Strategic Crypto Reserve with a targeted investment volume of $1 billion as part of broader efforts to diversify investment instruments and increase returns.