NUR-SULTAN, Sept. 7 (Xinhua) -- The National Bank of Kazakhstan or the central bank on Monday decided to maintain the base rate at 9 percent, with a corridor from plus or minus 1.5 percentage point around the benchmark.
The central bank said the current level of the key base rate will keep the inflation rate under control and help lower the inflation rate in the medium term in the country.
The annual inflation rate will reach 8 percent by the end of this year and slow to 6 percent by the end of next year, the bank estimated.
The bank said the country's gross domestic product (GDP) in 2020 is expected to contract by 2-2.3 percent due to a steeper decline in economic activities in the second quarter as a result of a nationwide lockdown from July due to the COVID-19 pandemic.
As the epidemiological situation gradually improves, the GDP growth rate in 2021 will rebound to 3.5-3.8 percent, said the bank, adding that the recovery of external demand, the implementation of deferred investment projects, the revival of consumer demand and the labor market and the fiscal stimulus policy will contribute to the growth.
Kazakhstan's central bank cut the key interest rate from 9.5 percent to 9 percent on July 20. The next session to review the key rate will be held on Oct. 26. Enditem