Kazakh National Bank keeps base rate at 16.5%The National Bank of Kazakhstan left its base rate unchanged at 16.5% per annum with an interest rate band of ±1 percentage point, the regulator said Friday.The decision was broadly in line with analysts’ expectations surveyed by Interfax-Kazakhstan.According to the National Bank, annual inflation held at 11.8% in July. Price growth in food and non-food goods accelerated, while inflation in services slowed for the first time this year. As a result, food prices overtook services as the main driver of headline inflation. The slowdown in services inflation was partly linked to delayed increases in regulated tariffs.Monthly inflation slowed to 0.7%, though it remains significantly higher than the annual average. Core inflation also moderated slightly, with base and seasonally adjusted inflation at 0.8%, compared with 0.9% and 1% in June.“Despite the slowdown, inflationary pressures remain elevated due to ongoing tariff reforms, fiscal stimulus, and robust consumer demand supported by rapid retail lending growth,” the National Bank said.Inflation expectations among households rose to 14.2% in July. Short-term expectations remain volatile, while longer-term expectations show an increase.External price pressures persist. Global food prices continue to rise, while inflation in Russia remains high despite some easing. The rhetoric of the U.S. Federal Reserve has softened somewhat, but external monetary conditions have slightly worsened compared to the previous forecast round in May due to expectations of a slower pace of Fed rate cuts. This is driven by inflation that remains above the Fed's target, risks associated with U.S. trade policy, and wage growth outpacing inflation. The European Central Bank's rhetoric remains cautious due to high uncertainty linked to trade conflicts, according to the regulator.The next policy decision will be announced on October 10, 2025, at 12:00 pm Astana time.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 previous meeting on July 11 this year. (ICE ALMATY)

Fonte notizia: INTERFAX