Monetary policy in the agricultural sector of the Republic of Kazakhstan: Problems and solutions

Articles in Press

Authors

1 School of Business and Law, Department of Management and Organization of Agribusiness named after Kh.D. Churin, Kazakh National Agrarian Research University, 8 Abay Ave., 050010, Almaty, Kazakhstan

2 Faculty of Economics and Entrepreneurship, Kazakh-German University, 111 Pushkin Street, 050010, Almaty, Kazakhstan

10.22124/cjes.2025.9231

Abstract

The purpose of this article is to develop a new monetary policy framework for the agro-industrial complex (AIC) of the Republic of Kazakhstan, designed as a key macroeconomic instrument for achieving sustainable and innovation-driven development of the sector. The study proceeds from the premise that the new monetary policy must be organically integrated into the overall socio-economic development system of the republic. Accordingly, the article outlines the theoretical foundations of economic growth, including the main factors, approaches, and methods of economic development; the experience of developed countries in fostering innovation through digital technologies; and the role of the state in transforming the economy toward an innovation-based model. It further examines the theoretical principles underlying monetary policy formation, as well as the mechanisms for enhancing the effectiveness of the banking system in meeting economic and public needs. The discussion also addresses the classical principles governing the functioning of the monetary system, the problem of inflation and its mitigation strategies, and a synthesis of the United States and European Union experience in monetary policymaking. A critical assessment of the National Bank of Kazakhstan’s monetary policy is presented, focusing on refinancing and lending rates, banking margins, loan structures by maturity, currency denomination, lending terms, and borrower categories over the past 14 years. In addition, the article provides a detailed evaluation of credit allocation across individual sectors, identifying deficiencies, regulatory violations, and their consequences. Finally, proposals for the development of a new monetary policy framework are substantiated, followed by the main conclusions of the study.

Keywords

References

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Caspian Journal of Environmental Sciences

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Available Online from 27 November 2025

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