The Monetary Policy Strategy 2030 is a long-term document that determines the direction of development of monetary policy for the next 10 years.
The strategy aims to increase the transparency of the policy of the National Bank of the Republic of Kazakhstan in order to strengthen the capacity to ensure price stability and the basis of the inflation targeting regime in Kazakhstan. It defines the main goals and priorities of the monetary policy, which will increase the awareness and understanding of the National Bank's activities by society.
Based on the analysis of the factors restraining the potential for reducing inflation, priority measures to overcome structural constraints in the economy and improve monetary policy mechanisms to achieve a full-fledged inflation targeting regime have been identified.
Key initiatives in the Strategy are divided into 3 areas.
- Strengthening the monetary framework provides for anchoring inflationary expectations, exiting of the National Bank from the economy lending programs, improving communications, as well as strengthening the foundations of a floating exchange rate. Successful implementation of measures in this area will increase the effectiveness of the pursued monetary policy, stabilize the level of expected inflation, as well as strengthen adherence to the floating exchange rate regime, while maintaining a sufficient level of international reserves.
- For the development of the financial market, work is envisaged to increase its efficiency, sustainably reduce dollarization and develop the government securities market. The formation of a developed financial sector will increase confidence in the national currency and lead to greater stability of the country's financial system.
- Strengthening the foundations of macroeconomic policy provides the implementation of systemic measures aimed at diversifying exports and reducing import dependence, increasing fiscal discipline and countercyclical expenditures with the transition to market-based government support measures while developing market tariff setting. The main results of work in this area will be a decrease in the economy's dependence on external factors, a strengthening of the fiscal position and an increase in macroeconomic stability.
The implementation of initiatives in all of the above areas will allow building the necessary elements of inflation targeting, which, in turn, will strengthen control over price increases, will ensure the reduction and stabilization of inflation within the established medium-term target of 3-4%. This will create a predictable environment for long-term investment and will contribute to the sustainable development of Kazakhstan's economy.
The full version of the Strategy is published below.