National Bank Raises Base Rate to 18% Amid Inflationary Pressures
The Monetary Policy Committee of the National Bank of Kazakhstan raised the base rate to 18% per annum with a corridor of ±1 percentage point on Oct. 10.
Annual inflation rose to 12.9% in September, driven by increases in food (12.7%), services (15.3%), and fuel (11.9%) prices. Monthly inflation also quickened to 1.1%, signaling persistent price pressures.
The Bank noted that high inflation expectations, strong fiscal stimulus, and active consumer lending continue to sustain excess demand. Domestic factors such as tariff adjustments, tax reforms, and fuel market liberalization remain the main drivers of inflation.
National Bank Chairman Timur Suleimenov stated that inflationary pressures are intensifying due to both domestic and external factors. While the economy grew 6.5% year-on-year in January–August, the Bank cautioned that growth is mainly concentrated in demand-driven sectors.
The regulator affirmed its commitment to containing inflation and signaled readiness for further tightening if needed. The next policy rate decision will be announced on Nov. 28.
Photo credit: National Bank
