AKIPRESS.COM - The National Bank of Kazakhstan set the inflation target range at 6-8% over 2017, said the Bank's chief Daniyar Akishev.

"The main tasks are to overhaul the monetary policy instruments, as well as to create the pleasant conditions for lending recovery. Key measures will be taken to strengthen the role of the base rate," he said. 

Moreover, the question about the clarification of the target rate in the money market will be considered. In order to adequately reflect the cost of money in the economy, the official refinancing rate will be equalized to the base rate. In addition, reserve requirements mechanism will be improved. NBK plans to continue working on the formation of the risk-free yield curve, which is an indicator of market expectations on interest rates. NBK will continue to issue its own securities-NBK notes with various maturities, said Akishev.

"If necessary, it will use its own portfolio of government securities for the purchase and sale of government bonds on the secondary market. Along with short-term notes and the auction for the purchase of securities with reverse sale (credit auction), NBK plans to introduce deposit auctions as part of open market operations," said Akishev.