Kazakh National Bank holds base rate at 16.5%, signals its conservation through 2025The Monetary Policy Committee of Kazakhstan’s National Bank has announced its decision to maintain the base rate at 16.50% per annum, with an interest rate band of ±1 p.p., the National Bank said in a press release on Friday."The current balance of inflationary factors, price growth dynamics, pro-inflationary trends and persistent external uncertainties make it highly likely the rate will remain unchanged through the end of 2025. However, the Monetary Policy Committee does not rule out a potential rate hike if necessary," the press release says.The regulator noted that service sector inflation (16.1%) remains the primary driver of price growth, fueled by both regulated tariff reforms and market-driven increases. Food inflation (10.6%) also remains elevated due to rising costs of imported goods and key agricultural products.External inflationary pressures have eased slightly, partly due to slowing inflation in Russia, Kazakhstan’s major trading partner, according to the National Bank."Global food prices remain high (excluding grains). While inflation in developed economies has declined since the start of the year, central banks face growing uncertainty, prompting a cautious and restrained policy stance," the press release says.The National Bank last raised the rate by 1 percentage point in November 2024, bringing it to 15.25%, where it stayed for over three months. In a surprise move in early March 2025, the regulator hiked the rate by 1.25 percentage points to 16.5%, citing the need for stronger measures to curb accelerating price growth. The rate was left unchanged at the June 5 meeting.The next rate decision by the National Bank is scheduled for August 29 at 12:00 Astana time. (ICE ALMATY)

Fonte notizia: INTERFAX