National Bank of Kazakhstan Cuts Interest Rate to 16.25%

The National Bank of Kazakhstan reduced its benchmark interest rate by 50 basis points to 16.25% on Friday. This action marks the third consecutive rate cut by the central bank, following a decline in inflation to its lowest level in more than a year.

While the bank kept its annual inflation forecast between 9% and 11%, it revised the 2027 outlook upward to a range of 6.5% to 8.5%. Governor Timur Suleimenov and other policymakers indicated that the scope for further reductions is now limited because of increased inflationary risks. They noted that a strong tenge exchange rate and moderately tight monetary conditions will help slow price growth.

The rate adjustment aligns with broader government goals to stabilize costs and achieve economic growth of at least 5.3% between 2027 and 2029. The central bank is scheduled to hold its next policy meeting on October 23.