National Bank Sets Base Rate at 14.5 Percent

NUR-SULTAN – The Monetary Policy Committee of the National Bank updated the base rate to 14.5 percent per annum with a corridor of +/- 1.0 percentage points, reports the bank’s press service.

The National Bank of Kazakhstan. Photo credit:

This year, the base rate was increased for the fourth time. First, it was increased from 9.75 percent to 10.25 percent Jan. 25. Later, it rose to 13.5 percent on Feb. 24. On April 25, the rate was raised to 14 percent.

The decision seeks to stabilize and slow down inflationary processes and expectations in 2023 and bring inflation closer to the target in the medium term.

Actual inflation significantly exceeded the forecast trajectory amid accelerating inflationary expectations. Both consumer prices and the general price level are rising with the annual inflation reaching 14.5 percent in June.

The bank estimates inflation will exceed the previous forecast by the end of this year. In the absence of new shocks, annual inflation growth will continue by the first quarter of 2023 and slow down thereafter.
The ongoing inflationary processes, fiscal measures to stimulate the economy and the external factors contributing to nflation require maintaining the base rate at current levels for a long time to encourage people to save, which will gradually affect inflation over the next year.

The next scheduled decision of the monetary policy committee on the base rate is expected to be announced on Sept. 5.

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