“Inflation issues require a collaborative and comprehensive effort from both the government and the National Bank, so that it does not become a one-sided action. Most likely, the comprehensive plan that was adopted by the government and the National Bank to reduce inflation will be revised in light of the current directives from the head of state,” he noted.
Sholpankulov added that this does not imply that the National Bank will informally be subordinate to the government. However, according to him, the regulator will always assess the financial stability of the country from its own perspective.
“Of course, we consult with the government, assisting it in addressing inflation reduction; this is a collaborative effort that cannot be overlooked. (…) Here, it was more about finding common ground and moving forward together so that clear joint efforts result in reduced inflation,” he explained.
Earlier, during an extended government meeting, Tokayev criticized the National Bank for the depreciation of the national currency and the acceleration of inflation. He described the situation as “unusual” and emphasized that the main work should now be conducted in “close cooperation with the government.”
“The previous principles of independence and autonomy ‘no longer work.’ The National Bank operates in accordance with its mandate. This is clear. Work is ongoing in the current mode, but questions certainly remain. Ensuring currency stability and curbing inflation is now the primary task of the National Bank,” said the head of state, adding that experts expect pressure on the tenge exchange rate due to the strengthening of the U.S. dollar.
In the first half of the day on January 30, the dollar exchange rate on the Kazakhstan Stock Exchange was 518.56 tenge. The annual inflation rate as of December was 8.6%. The regulator's target rate is 5%.
According to the law on the National Bank, the regulator is accountable to the president. It serves as the central bank of the republic and represents the highest level of the banking system.