The base rate of the National Bank of Kazakhstan will affect the monetary policy of the country

Astana. August 24. Silkroadnews - The base rate of the National Bank will influence the monetary policy of Kazakhstan, reports KazTAG citing the press service of the National Bank of Kazakhstan.
"The transition to a free floating exchange rate of tenge provided monetary policy of the Republic of Kazakhstan till 2020 as one of the conditions for the introduction of inflation targeting. The new exchange rate regime increases the impact of interest rates of the National Bank for short-term money market rates. In turn, money market rates will affect the cost of credit resources and investments in the economy, economic activity and inflation", - said the National Bank.
As noted, the main tool for influencing the nominal interest rate will be the base rate of the National Bank. Interest rates on other instruments of monetary policy will be tied to the base rate.
Recall, the government and the National Bank made a decision to switch from 20 August 2015 to the regime of freely floating exchange rate.
Meanwhile, it is reported that according to the plan of measures to promote economic growth in the medium term, the government and the National Bank of Kazakhstan will focus on supporting the real economy and encouraging private investment, employment and job creation, maintenance of financial stability, effective use of the National Fund, as well as to balance the national budget.