Kazakh National Bank Keeps Base Rate at 16.75 Percent

ASTANA – The National Bank of Kazakhstan has decided on May 26 to keep the base rate at 16.75 % for the fourth time since December last year, according to the bank’s press service.

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

The decision is based on the bank’s updated forecasts, data analysis, and the inflation risks balance assessment. Pro-inflationary pressures remain in Kazakhstan amid fiscal stimulus, strong domestic demand, high and volatile inflation expectations, higher prices for fuels and lubricants, and the expected increase in tariffs for housing and communal services.

“The total balance of risks due to the weakening of pressure from external inflation has slightly shifted towards disinflationary factors. Alongside the slowdown in the stable part of inflation observed since September 2022, there may be room for a gradual and slow reduction in the base rate in the second half of this year,” reads the report.

The next planned decision on the base rate will be made on July 5.

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