In two weeks of February inflation in Kazakhstan - 0.1% - NB

/IRBIS, Feb.25, 00/ - REUTERS informs, with the reference to the chairman of the National Bank Grigorii Marchenko, that in two weeks of February inflation reached 0.1% in Kazakhstan compared with 2.6% in whole January, when sharp price hike was caused by repayment of social debts. He said inflation had reached 2.6% in January because the Ministry of finance was paying off pensions and social payments, and therefore cash increased by almost KZT30 bln in December. The chairman also said the National Bank had taken some measures to avoid negative consequences of this situation, and it resulted in only 0.1% inflation in two weeks of this month. The National Bank believes the government can keep the inflation within forecasted boundaries this year. The inflation rate has been forecasted at 9% for this year. He said it was their task to maintain the real exchange rate, that is the rate that incorporates inflation, stable. Marchenko said the government and the National Bank were expecting 9- 10% devaluation of tenge this year as it was planned. He also added that the National Bank was not interfering in the market and that they has made interventions only three times out of 14 sessions. He said firming of tenge against the dollar has stimulated the trust of the population in bank deposits in national currency. The chairman said tenge deposits were more beneficial even in 12 month perspective, though it would be hard to talk about two years. Three month tenge deposits are more profitable with 20% APR than 6-8% dollar deposits when the tenge is relatively stable, said he. He mentioned that the market for SS in tenge that was revived late last year and is currently functioning good had become one of the achievements of the Ministry of finance and the National Bank.