Dr. Kemme's work recognized by Central Bank of Kazakhstan
For release: February 8, 2016
Dr. David Kemme, Chair of Excellence in International Economics, has been advising the Central Bank of Kazakhstan and has played a key role in Kazakhstan's adoption of a floating exchange rate. Some of his work was recently recognized in a press release from the National Bank of Kazakhstan (NBK), which was in turn discussed in an article by the Research Department of Halyk Finance, one of the largest banks in Central Asia.
Dr. Kemme designed the forecasting and policy analysis system for the Research and Strategy Division of the National Bank, which provides guidance in setting the base rate – the key monetary policy instrument. According to the press release, the establishment of the base rate was facilitated by the "improvements in the forecasting of macroeconomic indicators (GDP, inflation) and microeconomic indicators (banks' liquidity forecasting), and by the adoption of full-fledged version of the floating exchange rate regime." The NBK press report credits these improvements, along with the adoption of full-fledged version of a floating exchange rate regime, in facilitating the NBK's decision to resume its role as lender of last resort. On February 2 it started lending again, at a new base rate at 17% with a corridor of plus or minus 2 percentage points.