The National Bank of Kazakhstan has reduced the base rate from 16.25% to 15.75%. At the same time, the regulator noted that due to inflation risks, the possibility of a further base rate reduction by the end of the year remains low.
Commenting on the decision, the bank noted that cutting the base rate was possible due to a continued slowdown in annual inflation (to 9.3%) and a reduction in inflation expectations. The regulator stressed that monetary policy remains moderately tight.
The National Bank noted that price pressure remains elevated and the balance of risks is tilted toward inflation. By the end of the year, annual inflation may accelerate because of the low 2025 base, when utility tariffs were frozen and utility service prices declined.
«Considering the current balance of risks, the possibility of a change in the base rate by the end of 2026 remains low. The possibility of a further base rate reduction will depend on evidence of a sustained easing in price pressure. Further decisions will be made taking into account inflation trends, inflation expectations and changes in the balance of risks,» the National Bank noted.
The next base rate decision is scheduled to be announced on Dec. 4 at 12 p.m. Astana time.
The base rate is the National Bank’s main tool for controlling inflation. It affects the cost of money in the economy: how much banks pay to attract funds and the interest rates they charge on loans.
When the base rate rises, loans generally become more expensive, and they may become cheaper when the rate falls. This significantly affects new loans with floating interest rates. At the same time, when the base rate is high, banks usually offer higher returns on tenge deposits to attract funds.