ASTANA – The Monetary Policy Committee of the National Bank of Kazakhstan has set the base rate at 18% per annum with a corridor of ±1 percentage point, citing accelerating inflation and strong domestic demand on Oct. 10.
National Bank Chairman Timur Suleimenov. Photo credit: National Bank
The bank noted that annual inflation rose to 12.9% in September, above forecasts, driven mainly by food (12.7%), services (15.3%), and fuel (11.9%). Monthly inflation also accelerated to 1.1%, indicating persistent price pressures and secondary effects.
According to the statement, high inflation expectations, robust fiscal spending, and active consumer lending are sustaining excess demand. Domestic factors, including tariff and tax reforms and the liberalization of the fuel market, remain the main sources of inflationary pressure.
National Bank Chairman Timur Suleimenov commented that the inflationary background has worsened, and pressure on prices now comes from both domestic and external sources.
“The rate hike was necessary to restore moderately tight monetary conditions and prevent further acceleration of inflation,” he said.
Economic growth reached 6.5% year-on-year in January–August, supported by construction, trade, and transport, but the bank warned that growth is concentrated in demand-driven sectors.
The National Bank said it will continue to monitor risks and may consider further tightening if necessary. The next decision on the base rate will be announced on Nov. 28.
