National Bank Sets Base Rate at 16 Percent Amid Rising Inflation

ASTANA – The Kazakh National Bank’s monetary policy committee has decided to raise the base rate to 16 percent per annum with a corridor of +/- 1.0 percentage points on Oct. 26, as the inflation exceeded the expectation in September, reported the bank’s press service.

The National Bank of Kazakhstan. Photo credit:

The decision is prompted by high inflationary expectations, strong demand, fiscal stimulus, growing production costs due to reorientation to more sustainable supply chains, and ongoing external inflation pass-through, mainly due to Russia’s ruble’s continued rise.

“Increased inflationary expectations are putting pressure on prices and consumer behavior. All this requires tighter monetary conditions to maintain control over inflationary processes in 2023,” reads the report.

This year, the National bank decided to increase the base rate for the fifth time. First, it was increased from 9.75 percent to 10.25 percent on Jan. 25. Later, it rose to 13.5 percent on Feb. 24. On April 25, the rate was raised to 14 percent, and on July 25, the figure was updated to 14.5 percent.

The monetary policy committee is scheduled to meet on Dec. 5 to announce a new base rate.

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