ASTANA – The National Bank of Kazakhstan (NBK) announced to raise the base rate to 16.5% per annum with a corridor of +/- 1 percentage point this Friday.
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The bank’s press service reported that inflation in Kazakhstan increased to 9.4% in February, and expectations rose to 13.7%. Prices are growing most due to the rise in service costs, high demand, and active consumer lending. External factors, including the situation in Russia and high global commodity prices, also contribute to inflationary pressure.
The bank forecasts inflation to reach 10-12% in 2025, 9-11% in 2026, and decline to 5.5-7.5% by the end of 2027.
The base rate rise was driven by a significant deviation of inflation from the target and softening of aggregate monetary conditions.
“This will stabilize short-term and long-term inflation expectations and prevent the consolidation of the trend towards accelerating price growth,” reads the statement, adding that the move will preserve the purchasing power of incomes and protect the savings of the population, as well as support market participants’ confidence in tenge assets.
Economic growth is projected to slow to 4.2-5.2% in 2025-2026 but may accelerate with reforms related to increased fixed capital investment, foreign direct investment, and economic liberalization.
