Kazakhstan’s National Bank raises base rate to 16.50% amid inflation сoncernsThe National Bank of Kazakhstan has raised its base rate by 1.25 percentage points to 16.50% per annum, with a corridor of +/- 1 percentage point, the central bank announced.The decision, made by the Monetary Policy Committee, reflects efforts to address rising inflation risks and aligns with analysts’ expectations."The move is based on an analysis of current economic data, updated forecasts, and an assessment of inflation risks," the National Bank said in a statement.The decision comes as annual inflation accelerated to 9.4% in February, driven by surging service prices and strong domestic demand fueled by fiscal stimulus and overheated consumer lending (33.5% year-on-year in 2024). Monthly inflation also exceeded historical averages, with core and seasonally adjusted inflation reaching 14.2% and 16.9%, respectively. External pressures, including rising inflation in Russia and elevated global food prices, further exacerbated inflationary trends.The rate hike aims to stabilize inflation expectations, prevent a price surge spiral, and protect household incomes and savings. The National Bank emphasized that the move is intended to avoid more aggressive future rate increases and to steer inflation back toward its 5% target in the medium term."This decision aims to stabilize both short- and long-term inflation expectations, prevent sustained price growth acceleration, and avert the formation of an inflationary spiral. It is designed to safeguard the purchasing power of incomes and savings while maintaining market confidence in tenge assets," the National Bank stated.Achieving low inflation is seen as critical for economic stability, financial sector resilience, and attracting investments. The bank will continue to monitor economic conditions and adjust monetary policy as needed to ensure price stability.This decision marks a shift from last year’s monetary easing, when the central bank cut the rate three times, bringing it down to 14.25% by July 2024. However, in December 2024, the rate was raised by 100 basis points to 15.25%, where it remained unchanged in January 2025.The next base rate decision is scheduled for April 11 at noon Astana time. (ICE ALMATY)

Fonte notizia: INTERFAX