National Bank of Kazakhstan reduces base rate

The National Bank of Kazakhstan reduced the base rate to 16.5 percent, down from the previous annual rate of 16.75. The financial regulator attributes this decision to the continued easing of pro-inflationary pressures from the external environment. In most countries, inflation is slowing down as a result of central banks’ policies aimed at ensuring price stability. Prices in global markets and logistics costs are also decreasing. However, within the economy, there remains pressure from robust domestic demand, inflation expectations, and rising production costs. Overall, the National Bank of Kazakhstan improved its economic growth forecast for 2024-2025 to four-five percent. Inflation expectations were also positively revised. These trends will be driven by the expansion of business activity, the recovery of the oil sector and increased budgetary expenditures, experts note.