The National Bank of Kazakhstan (NBK) has decided to keep its key interest rate unchanged at 16.5% per year, with a corridor of ±1 percentage point. The decision was made against the backdrop of persistent inflationary pressure and strong economic growth, NBK Chairman Timur Suleimenov announced, as reported by Kazinform.
“Inflationary pressures remain high, and short-term expectations are still volatile. The economy is growing at a rapid pace, and demand continues to outstrip supply, putting upward pressure on prices,” Suleimenov explained.
Year-on-year inflation reached 11.8% in July. Service inflation eased to 14.9% from a peak of 16.1%, food inflation rose to 11.2%, and non-food goods prices increased by 9.5%.
GDP growth accelerated to 6.3% in the first seven months of the year, driven by a 22.5% expansion in transport and 18.5% growth in construction. According to the central bank governor, the main source of demand remains robust consumer lending.
Against a backdrop of external risks—including oil market volatility and high inflation in key partner countries (8.8% in Russia, 2.7% in the US, and 2.4% in the EU)—the NBK maintains its baseline forecast for Brent crude at $60 per barrel.
“Our main task is to stabilize inflation expectations and bring inflation down. To achieve this, we will maintain a moderately tight monetary policy stance for an extended period,” Suleimenov concluded.
CentralasianLIGHT.org
August 29, 2025