Kazakhstan explained why they cannot reduce base rate to 4%

The management of the National Bank of Kazakhstan ruled out the possibility of reducing the base rate in the republic to 4%. This was announced on August 5 by Deputy Chairman of the National Bank Akylzhan Baymagambetov, Informburo reports. According to him, a reduction in the base rate will lead to a reduction in deposit rates. In the face of rising inflation to 8.5% at the end of the year, depositors will transfer their money to foreign currency. Baymagambetov said that reducing the base rate as a result will lead to a reduction in the tenge funding base. The economy will bleed, everyone will begin to play in the foreign exchange market. The effect will be opposite to what was conceived, said the deputy chairman of the National Bank. According to the news agency, on July 24, the Bank of Russia reduced its key rate to a historic low of 4.25%. See also: The economist explained why the Central Bank reduced the key rate