Main itself. Conclusion The main goal for the

Main targets of the Monetary Policy in the year 2018

Based on the current situation in
Kazakhstan and the world oil markets, the main objective of the NBK will be to
ensure price stability. Existing in recent world markets have a positive impact
on the macroeconomic development of Kazakhstan and at the same time cause a
number of problems. One of them is the excess liquidity of the banking system,
including external borrowings of enterprises in the real sector and commercial
banks, which leads to rapid growth of loans in the economy. The situation is
exacerbated by a significant influx of foreign investment, as well as an
increase in public budget expenditures in recent years. In these conditions, a
threat of overheating of the economy is possible. The goal of monetary policy
will be to keep inflation. To achieve this goal, the NBK is strengthening its
impact on monetary policy operations to further enhance the regulatory role of
its key rates. The NBK’s actions foreseen in the near future will affect the
liquidity of the banking system, which coincides with the interim goals of the
monetary policy pursued by the NBK. Despite the envisaged measures to limit
liquidity in the next three years, the annual growth of monetary aggregates
will ensure the preservation of the existing rates of economic growth. The
tightening of monetary policy implies a change in the direction of influence of
official NBK rates on market rates on loans. If in previous years the NBK
measures were aimed at resolving the task of boosting the activity of banks in
lending to the economy, including reducing rates, then, in the circumstances of
the need to prevent overheating of the economy, the issue of rate reduction is
no longer set as an end in itself.

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Conclusion

The main goal for the monetary policy of the republic of Kazakhstan will be
maintaining the medium-term inflation target –below 4%. National Bank will
focus on stability functioning of the economy; price stability and improving
indicators of the yield curve. In conclusion, I would like to add that
developing countries should not blindly copy the experience and results of
their neighbors and other developing and developed countries when developing
their own monetary policy. The same monetary policy can lead to completely
different results. This comes primarily from the prerequisites forcing the
Central Bank to pursue a corresponding monetary policy. Any state, both
developed and developing, should attach great importance to the Central Bank
and its monetary policy. The Central Bank should be fully independent in its
policies. At the same time, it is important to take into account that the goals
of the government do not contradict the CBR’s monetary policy. In the
process of implementing monetary policy, the Central Bank should try to ensure
the necessary expansion of loans and the size of the money supply corresponding
to the long-term needs of the growing economy of developing countries, while
respecting the stability of domestic prices. In a shorter period, monetary
policy should not allow undue inflationary or deflationary processes. The
most important objective of monetary policy should be price stability, which,
with the provision of which conditions are created conducive to economic
growth. For effective implementation of monetary policy in developing
countries, it is necessary for monetary authorities to set priorities,
objectives and ways to achieve them, drawing on the experience of developed and
successfully developing countries. Before conducting monetary policy as
a powerful tool for regulating the economy, an objective assessment of the
current situation in the monetary and credit sectors and in the economy as a
whole should be given. The bodies that develop and evaluate monetary policy
must constantly monitor developments in the economy.