Azernews.Az

By Aynur Jafarova

Kazakhstan's government and the National Bank are jointly working out a complex of measures to reduce inflation rate in the country.

The news was announced by Kazakh Economy and Budget Planning Minister Erbolat Dossayev, Trend Agency reported.

"Jointly with the National Bank, the Kazakh government is developing a complex of measures to reduce inflation to 3-4 percent in the medium term. This work will be completed in July, 2014," the minister told journalists.

Dossayev further said the strengthening of inflationary processes has been observed since February 2014 as a result of adjustment of the tenge exchange rate.

The inflation in the country increased by 1.7 percentage points compared to the same period of 2013, reaching 3.9 percent in April 2014.

"Despite the increase, the inflation level for 2014 is estimated at 6-8 percent," Dossayev said, adding that the country will take medium-term and short-term measures.

"The exchange rate policy will focus on preventing the dramatic increases and short-term volatility of the exchange rate," the minister said.

Chairman of Kazakh National Bank Kairat Kelimbetov believes there are no reasons for another devaluation of Kazakhstan's national currency tenge.

He noted the devaluation of tenge is not expected.

"There are no grounds for this, the oil prices are high. Besides, the country has a margin of safety," Kelimbetov told journalists.

In February 2014, the Kazakh National Bank decided to devalue its tenge currency by 19 percent to about 185 per dollar. In February 2009, the National Bank of the country weakened tenge by 25 percent against dollar as well.