Kazakhstan Interest Rate

The National Bank of Kazakhstan kept its benchmark interest rate unchanged at 16.5% during its July 11, 2025 meeting, maintaining a tight monetary stance amid persistent inflationary pressures. Annual inflation accelerated to 11.8% in June, driven by higher prices for services, food, and imported goods, while monthly inflation eased slightly to 0.8%. Policymakers cited continued inflationary risks stemming from tariff reforms, fiscal stimulus, rapid consumer lending, as well as high and volatile inflation expectations. Domestic demand remained strong, with GDP growth reaching 6% in the first five months of 2025, led by transport, construction, and trade. The central bank emphasized that the restrictive policy, alongside coordinated government measures, aims to anchor inflation toward the 5% target. Barring external shocks, the current rate may be maintained through year-end, though further hikes remain possible if inflationary risks intensify. The next meeting is due August 29, 2025.