The National Bank of Kazakhstan has decided to maintain the base rate at 14.25%
The Monetary Policy Committee of the National Bank of Kazakhstan (NBK) decided on Aug. 29 to keep the base rate at 14.25% with a corridor of +/- 1 percentage point, reported the bank’s press service.
Annual inflation increased to 8.6% in July, consistent with the NBK’s forecast. This rise is due to higher costs for market services, increased manufacturing prices, and a weakening exchange rate, while the decline in agricultural product prices has slowed.
Globally, inflation is decreasing. In July, cereal prices dropped due to stronger seasonal supplies in the Northern Hemisphere and better harvest expectations from favorable weather. Cereal prices are projected to continue their gradual decline.
The inflation forecast for 2024-2025 is 7.5-9.5% and 5.5-7.5%, respectively. For 2026, inflation is expected to be 5-7%. A moderately tight monetary policy is expected to reduce core inflation to 5% in 2026.
Economic growth in Kazakhstan is projected to be 3.5-4.5% for 2024 and 4.9-5.9% for 2026. The growth forecast for 2025 has been slightly increased to 5-6%. GDP growth from 2024 to 2026 will be driven mainly by domestic demand, supported by increased fiscal stimulus, and by the oil sector in 2025 and 2026 due to higher production.(Source:astanatimes)
