Kazakh National Bank Keeps Base Rate at 16.75%

ASTANA – The National Bank of Kazakhstan has decided on July 5 to keep the base rate at 16.75% for the fifth time since December last year, the bank announced.

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

“The overall risk balance remains weakly biased towards disinflationary factors, primarily due to the easing pressure from the external sector. However, the modest deceleration of core inflation and rising inflation expectations require a cautious approach to implementing monetary policy,” reads the report.

Chairman of the National Bank Galymzhan Pirmatov listed several reasons why it was decided to keep the base rate at 16.75%, including dynamics of inflation and inflation expectations, trends in the domestic economy and foreign economic conditions. The main goal, he said, is to achieve a steady reduction in inflation.

“Despite the observed and expected positive shifts in inflationary processes in the country, it is still too early to talk about a confident and stable trend of lower inflation due to the presence of internal pro-inflationary factors and possible risks of price growth in the future,” he said.

The next planned decision on the base rate will be made on Aug. 25.

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