BAKU, Azerbaijan, November 10. The macroeconomic situation in the current year is developing amid the deterioration in the geopolitical situation, an increase in volatility in the global financial and commodity markets, Chairman of National Bank of Kazakhstan (NBK) Galymzhan Pirmatov said at the plenary session of the Senate, Trend reports citing the government.
"Rising geopolitical situation has exacerbated supply chain disruptions that are adding to inflationary pressure around the world. Inflation in many countries is at high levels, reaching its highs in several decades. Thus, inflation in the US reached one of the highest levels in 40 years - 8.2 percent, in the UK and the Eurozone, the inflation has moved into the double-digit zone - 10.1 percent and 10.7 percent respectively,” he said.
Pirmatov noted that the problem of high prices goes far beyond the food and energy sector. Therefore, the International Monetary Fund (IMF) raised its forecast for global inflation, pointing out the risk of a longer persistence of inflation.
"According to the updated IMF forecasts, the inflation will reach 8.8 percent at the end of 2022. Subsequently, the IMF forecasts a slowdown in global inflation to 6.5 percent in 2023 and to 4.1 percent in 2024," he stated
"In the fight against inflation, Central Banks are pursuing an increasingly synchronized cycle of raising rates, since price stability is the most important prerequisite for sustainable economic growth,” Pirmatov explained.
According to him, these measures are aimed at reducing price pressure and returning inflation to the target level, controlling inflation expectations in order to prevent the loss of trust earned by decades of effort.
The Senate is considering the draft law "On the budget of the Republic of Kazakhstan for 2023-2025".
Earlier, deputy of Kazakhstan's Parliament Amanzhan Zhamalov said about the need to create effective tools to fight inflation, voicing an MP's request to the Prime Minister of Kazakhstan Alikhan Smailov. Zhamalov voiced his proposals to reduce prices in the country.