Kazakhstan Lowers Inflation Target in Bid to Curb Rising Prices

Central Bank Cuts Target to 5-7% for 2023

Kazakhstan's central bank has lowered its inflation target to 5-7% for 2023, a move aimed at curbing rising prices in the country. The decision was announced at a meeting of the central bank's board of directors on Thursday, July 21, 2022. The previous target was 6-8%.

The central bank's decision comes amid rising inflationary pressures in Kazakhstan. The country's annual inflation rate reached 14.5% in June, the highest level since 2015. The increase in inflation has been driven by a number of factors, including the war in Ukraine, the global energy crisis, and supply chain disruptions.

Measures to Curb Inflation

In addition to lowering the inflation target, the central bank has also announced a number of other measures to curb rising prices. These measures include:

• Raising interest rates
• Increasing the sale of foreign currency
• Tightening fiscal policy

The central bank said that these measures are necessary to "ensure price stability and create conditions for sustainable economic growth." The bank also said that it will continue to monitor the inflation situation and take further action if necessary.

Government Response

The government of Kazakhstan has also announced a number of measures to help curb inflation. These measures include:

• Providing subsidies to businesses and consumers
• Increasing imports of essential goods
• Expanding social welfare programs

The government said that these measures are aimed at "protecting the population from rising prices and maintaining social stability." The government also said that it will continue to work with the central bank to bring inflation under control.

Impact on Economy

The lowering of the inflation target and the other measures announced by the central bank and government are likely to have a significant impact on the economy of Kazakhstan. The measures are likely to lead to higher interest rates, which could slow economic growth. However, the measures are also likely to help curb inflation and protect the population from rising prices.

The impact of the measures will depend on a number of factors, including the severity of the inflation problem and the effectiveness of the measures implemented by the central bank and government. However, the measures are likely to have a positive impact on the economy in the long run.