National Bank of Kazakhstan lowers base rate to 16.75% p.a.

ASTANA. July 24 (Interfax) - The Monetary Policy Committee of the National Bank of Kazakhstan has made the decision to lower the base rate to 16.75% per annum with a corridor of plus or minus 1 percentage point, the National Bank said in a statement.

Analysts surveyed by Interfax predicted that the bank would hold the rate at 17%, where it has been since June.

The central bank said the decision reflects a moderation in annual inflation and allows for a proportional adjustment in the tightness of monetary conditions.

"The decision is based on the assumption that fiscal consolidation will proceed as planned, with budget parameters, transfers from the National Fund and quasi-government stimulus all kept within approved limits," the bank said, adding that any significant deviation from those targets would trigger a reassessment of the risk balance and the rate trajectory.

The bank said further decisions will depend on data confirming that the current inflation trend is holding, as well as clarity on regulated tariff adjustments and developments in global fuel and commodity markets.

"The National Bank does not set a predetermined rate path and leaves open the possibility of both pauses and policy reversals, depending on how actual inflation tracks against the forecast," the statement said.

The base rate had been held at 18% from October 2025 until June 5, when it was lowered to 17%.

The next rate decision is scheduled for September 4.