National Bank Chief Timur Suleimenov Hints at Possible Subsequent Rate Hike

National Bank of Kazakhstan Chief Timur Suleimenov said that if inflation remains high, the country’s monetary policy could be tightened further, Orda.kz reports.

Today, the National Bank’s Monetary Policy Committee decided to keep the base rate at 18% per annum with a corridor of ±1 percentage point.

Suleimenov shared his outlook on whether the rate could rise again:

If necessary, if we must, we will raise it. If inflation does not start to slow gradually, we’ll have to increase the rate to maintain moderately tight monetary conditions. But that decision would be made in November,
he said.

According to Suleimenov, the central bank will conduct its next forecasting round in November:

By November, I think we’ll have a complete picture of what’s happening in the economy — including November data and trends. Perhaps there will also be more clarity in the geopolitical environment. We’ll make the relevant decisions then.

Suleimenov on Household Debt

The National Bank head also commented on the issue of household debt, saying that it is wrong to attribute borrowing to a single reason.

Each person takes out a loan based on their own life circumstances. Some do it to buy a new refrigerator or TV, while others do it simply to make it to payday. This must be understood and acknowledged. There is no single reason why Kazakhstani citizens take loans,
Suleimenov emphasized.

He was responding to earlier remarks by the Minister of National Economy, who had suggested that people take loans because they feel financially secure enough to do so.

Suleimenov clarified that this statement referred not to wealthy citizens, but to those able to service their debts.

National Bank's New HQ

Suleimenov also confirmed that the National Bank’s new headquarters in Astana has been completed and has undergone a technical opening.

Considering safety and ICT requirements, we’re still finalizing some processes, but I hope we’ll fully move in by the end of October. The building was designed by the Zaha Hadid Architects bureau. There are no other buildings in Central Asia designed by this firm — this will be the first, a kind of architectural highlight of Mangilik El Avenue,
he said.

The governor declined to disclose the cost of the project:

This information is classified; I have no grounds to disclose it. Funding came from the National Bank’s budget, paid in several stages — advance, interim payments, and so on,
Suleimenov explained. 

Original Authors: Ilya Astakhov, Artyom Volkov, Third article