Kazakh National Bank Lowers Base Rate to 15.25%

ASTANA – The Monetary Policy Committee of Kazakhstan’s National Bank decided to reduce the base rate to 15.25% per annum from 15.75% (November, 2023), the bank’s press service reported on Jan. 19.

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

“Annual inflation reached single digit levels by the end of 2023. Monthly inflation in December slightly exceeded the historical average. External inflationary processes continue to develop favorably amid falling world food prices and the contractionary policies of central banks. Inflationary pressures remain in the domestic economy due to robust domestic demand, supported by fiscal stimulus, as well as elevated and unstable inflation expectations,” reads the statement.

The bank’s further decisions on the base rate will depend on whether the actual dynamics of inflation correspond to its forecast trajectory. Achieving the 5% inflation target requires maintaining moderately tight monetary conditions. The National Bank will monitor incoming economic information and, in the absence of shocks, the gradual reduction of the base rate will continue, not excluding pauses. However, the decline cycle can be long, according to the bank.

The next decision regarding the base rate will be announced on Feb. 23, at noon Astana time.

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