The Central Bank of Kazakhstan lowered the rate from 16.75% to 16.5% per annum – Kommersant

The National Bank of Kazakhstan has reduced the base rate from 16.75% to 16.5% per annum amid a decrease in pro-inflationary risks, the press service of the regulator reported. This is the first rate cut in Kazakhstan since 2020.

“The decision was made on the basis of updated forecasts of the National Bank, data analysis and an assessment of the balance of inflation risks,” the ministry said in a statement. At the same time, the National Bank kept the corridor +/- 1 p.p.

“Pro-inflationary pressure from the external environment continues to gradually weaken … With a further slowdown in actual inflation and its stable part, the policy of a smooth and prudent reduction in the base rate will continue,” the regulator said. In July, the National Bank of Kazakhstan kept the base rate at 16.75% per annum.

According to the forecasts of the National Bank of Kazakhstan, this year inflation will be in the range of 10-12%. GDP growth is expected at the level of 4.2-5.2%. The next decision of the National Bank on the base rate will be announced on October 6.

Against the backdrop of a short-term collapse of the ruble in mid-August, the Kazakh tenge fell more significantly than other world currencies. One of the reasons for the decline in the tenge is the reluctance of exporters to sell foreign currency after the initial fall of the ruble. At the same time, since the end of June 2022, the tenge has grown by almost 90% against the ruble.

Anastasia Larina