Kazakh government, National Bank draft plan to strengthen fiscal policy coordinationKazakhstan’s government and National Bank have developed a plan to enhance coordination between monetary, tax and fiscal policies; the document is now under discussion, Vitaly Tutushkin, the deputy chairman of the National Bank, told Interfax-Kazakhstan."In general, the National Bank and the government are always in close contact. (...) The president ordered us to strengthen coordination between monetary, tax and fiscal policies. A plan on how to achieve this is currently being discussed," Tutushkin said.He noted that there are several platforms to regularly discuss issues, including the coordination of the monetary policy with the fiscal and budgetary policies."There is the Council on Economic Policy [which develops proposals and recommendations for socio-economic development in the medium and long terms]. We have also made a joint statement," Tutushkin added.The National Bank earlier conducted an analysis to come to a conclusion that a 10% increase in the money supply leads to a cumulative inflation rise of 0.8 percentage points over a year.Last year, the National Bank maintained an accommodative monetary policy: the base rate was lowered three times and left unchanged three other times. However, amid rising prices, the Bank raised the base rate to 15.25% in December 2024 and to 16.5% in March 2025.In April of this year, annual inflation in Kazakhstan accelerated to 10.7% after slowing down to 8.6% in 2024 from 9.8% in 2023. The National Bank recently revised its inflation forecast upward, now expecting 10-12% in 2025 and 9-11% in 2026. The National Bank aims to stabilize inflation near 5% in the medium term. (ICE ALMATY)

Fonte notizia: INTERFAX