Kazakhstan National Bank unlikely to raise base rate in near future - chairman

ASTANA. Oct 6 (Interfax) - The National Bank of Kazakhstan will not raise its base rate in the near future, Chairman of the bank, Timur Suleimenov said.

"Not only existing tariffs but also other factors should be taken into account. However, if tariffs rise sharply, we will have to raise the rate, of course. We expect tariffs to increase gradually. We are working together with the government and local authorities to prevent a sharp increase. That is why we are sure we will not raise the rate," Suleimenov said at a briefing in Astana on Friday.

However, the chief banker did not say what future period he was referring to.

On Friday, The National Bank's Monetary Policy Committee announced a 50 basis points reduction in the base rate, bringing it down to 16% per annum with an interest rate band of +/- 1 percentage point, the regulator said on Friday.

The National Bank reduced the base rate in August from 16.75% to 16.5% annually, with a range of +/- 1 percentage point. The rate of 16.75% had been in effect since December 6, 2022, and remained unchanged following scheduled reviews in January, February, April, May, and July.