BAKU, Azerbaijan, December 15. The International Monetary Fund (IMF) expects inflation in Kazakhstan to remain above the target throughout 2024, Trend reports, citing the assessment report of the IMF.
The report was released as a part of the obligations assumed by Kazakhstan under Article IV of the IMF.
The IMF economists expect the inflation to subside gradually. According to the Fund, high commodity prices would be a positive factor for Kazakhstan, which benefits from low public debt, large official reserves, and exchange rate flexibility, but intensified spillovers from the conflict in Ukraine are the main near-term risk, especially if they exacerbate inflation pressures or durably affect oil exports through Russia.
The IMF believes that monetary policy should remain tight until inflation is contained, and inflation expectations are anchored.
The report states that despite continued policy rate increases in recent months, further monetary policy tightening may be needed to rein in inflation and protect the most vulnerable.
Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies.