Kazakh National Bank Keeps Base Rate at 16.75 Percent

ASTANA – The National Bank of Kazakhstan announced plans on April 7 to keep the base rate at 16.75 percent for the third time since December last year, according to the bank’s press service.

The National Bank of Kazakhstan. Photo credit: exk.kz

The bank made the decision due to the global inflationary pressures, which remain elevated despite some countries’ declining inflation.

“In Kazakhstan, annual and monthly inflation in March expectedly decreased. Despite the beginning of a slowdown in inflationary processes, it is still too early to assert a steady and stable trend of inflation decline. Internal pro-inflationary factors persist and begin to materialize in the form of unstable inflationary expectations, an increase in government spending, and the beginning of the implementation of urgent reforms in the fuel and utilities market,” reads the statement.

Further actions on the base rate will depend on the updated forecast in May, considering new data, including reform parameters in the fuel and utilities market.

The next planned decision on the base rate will be made on May 26.

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