Kazakhstan's National Bank holds base rate at 18% as expectedKazakhstan's National Bank kept its base interest rate at 18% on Friday, a widely expected move as annual inflation continues to slow but remains well above target."The monetary policy committee decided to set the base rate at 18% per annum with a corridor of plus or minus 1 percentage point," the National Bank said in its statement.Annual inflation eased to 11% in March, down from 11.7% in February. Food inflation slowed to 11.7% from 12.7%, non-food inflation edged down to 11.3% from 11.6%, and services inflation fell to 10% from 10.8%.The central bank credited "the slowdown to moderately tight monetary conditions, positive exchange rate trends, stabilizing consumer demand, partly due to slower consumer lending, and a government price freeze on utilities and fuels, along with other anti-inflation measures.""Monthly inflation dropped to 0.6% in March from 1.1% in February. Core and seasonally adjusted inflation also eased, though the bank said their current levels remain above what is needed to reach the 5% target, pointing to persistent inflationary pressure in the economy," the bank said.Inflation expectations among households for the year ahead rose to 14.6% from 13.7%, remaining elevated. Professional market participants expect inflation of 10% for 2026."On the external front, heightened tensions in the Middle East have pushed up global prices for energy, food and fertilizers, increasing inflationary pressure in many countries and raising risks of more expensive imports for Kazakhstan.Inflation remains high in Russia, where the central bank maintains a target of bringing it back to goal by 2027. In the eurozone and the United States, accelerating inflation in March was accompanied by rising uncertainty and higher inflation risks, the bank said. As a result, the European Central Bank and the Federal Reserve both kept rates unchanged, signaling a more cautious approach to future moves," the National Bank said.Kazakhstan's economy grew 3% year-over-year in the first quarter of 2026, according to preliminary data. Despite weaker performance in the oil sector, growth remains steady due to strong activity in construction, transportation, manufacturing and trade.The next scheduled rate decision will be announced June 5 at 12 p.m. Astana time.The base rate has been held at 18% since October 2025. The National Bank previously kept it unchanged at its March 6 meeting, the third consecutive hold at that level. (ICE ALMATY)

Fonte notizia: INTERFAX