The National Bank of Kazakhstan has reduced the base rate to 15.25%
On January 19, the Monetary Policy Committee of the National Bank of Kazakhstan decided to lower the base rate to 15.25% per annum from the previous rate of 15.75% in November 2023, as reported by the bank's press service.
“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.(Source:astanatimes)
The National Bank of Kazakhstan has stated that its future decisions on the base rate will be contingent on whether the actual inflation dynamics align with its forecast trajectory. To achieve the 5% inflation target, moderately tight monetary conditions need to be maintained. The bank will closely monitor economic data, and if no unforeseen shocks occur, the gradual reduction of the base rate will persist, with the possibility of pauses. The bank also mentioned that the decline cycle could be lengthy. The next decision on the base rate will be announced on February 23, at noon Astana time.
