Kazakhstan raises base rate to 18%

The Monetary Policy Committee of the National Bank of Kazakhstan has decided to raise the base rate to 18% per annum.

"Easing monetary conditions amid accelerating inflation, signs of demand exceeding supply expansion, and an active fiscal policy have required a significant response to stabilize inflation dynamics and prevent the risk of inflation spiraling," the National Bank explained.

The regulator said that annual and monthly inflation in September [12.9% and 1.1%, respectively] exceeded expectations across all sectors, including food, services, and non-food.

The National Bank also notes accelerated economic growth of 6.5% year-on-year in January-August 2025, noting that growth is concentrated in sectors dependent on fiscal expansion and domestic consumption.

"The committee has decided to hike the base rate under these conditions in order to tighten monetary policy owing to inflation exceeding forecasts," the regulator clarified.

The National Bank will continue to assess the balance of pro- and disinflationary factors closely, as well as the dynamics and trajectory of decelerating inflation. The feasibility of further tightening will be considered if the current level of tightness proves insufficient to stabilize inflation.