In March, monthly inflation slowed from 1.5% (MoM) to 1.3% (MoM). Nevertheless, annual inflation continued to grow and amounted to 10% (YoY) (9.4% (YoY) in February).
A prevalence of pro-inflationary external and domestic factors has been observed. Consequently, AERC has revised upward its annual and monthly inflation forecasts. It is anticipated that annual inflation will persistently increase over the following three months, reaching 11.9% (YoY) by June.
Despite the growth of inflation, inflationary expectations of the population decreased in March. In April, the tenge underwent a further depreciation, while the share of operations of the National Bank and quasi-governmental companies in the foreign exchange market increased.
The National Bank maintained the base rate at 16.5%. At the same time, the central bank intends to raise the minimum reserve requirements to curtail inflation for the first time since the transition to inflation targeting.
Read more in the Monetary Review.
