National Bank Raises Base Rate to Nearly 17 Percent

ASTANA – The Kazakh National Bank’s monetary policy committee has decided to raise the base rate to 16.75 percent per annum with a corridor of +/- 1.0 percentage points on Dec. 5, reported the bank’s press service.

The National Bank of Kazakhstan. Photo credit: bank’s Facebook account

The decision is based on external environmental reasons such as the uncertainty of the geopolitical situation and its effects and continued high food prices globally.

“The country’s economy faces historically maximum inflationary expectations, an imbalance in supply and demand, as well as a restructuring of trade with an accelerated growth in imports,” the report reads.

This year, the National Bank decided to increase the base rate for the sixth time. First, it grew 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 – to 14.5 percent. On Oct. 26, the base was set at 16 percent.

The monetary policy committee is scheduled to meet on Jan. 13, 2023, to announce a new base rate.

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