ASTANA: The Monetary Policy Committee of the National Bank of Kazakhstan (NBK) recently announced its decision to reduce the base rate by 25 basis points to 14.5 percent, incorporating a corridor of +/- 1 percentage point, Trend reports.

The move follows the NBK’s decision on April 12 to keep the base rate at 14.75 percent.

According to the National Bank, the inflation forecast for 2024 was kept in the range of 7.5-9.5 percent; for 2025, it was in the range of 5.5-7.5 percent. In 2026, as fiscal stimulus eases and moderately tight monetary conditions fully take effect, inflation will approach the 5 percent target and remain in the 5-6 percent range.

At the same time, the forecast for economic growth in Kazakhstan for 2024 has been maintained at 3.5-4.5 percent. Forecasts for 2025 and 2026 have been revised due to the postponement of the commissioning of the Tengizchevroil expansion project to the second half of 2025. Expectations for 2025 were reduced to 4.8-5.8 percent; in 2026, they increased to 4.9-5.9
percent.

The next planned decision of the Monetary Policy Committee of the National Bank of Kazakhstan on the base rate will be announced on July 12, 2024.

Source: Trend News Agency