Kazakhstan Interest Rate

The National Bank of Kazakhstan kept its benchmark interest rate unchanged at 16.5% during its April 11, 2025 meeting, maintaining borrowing costs at their highest level since September 2023. The decision comes as inflation remains elevated, driven mainly by rising prices in the services sector and higher costs for food and regulated tariffs. Headline inflation accelerated to 10% in March, staying within the central bank's forecast range of 10–12% for 2025. Price increases were significantly influenced by tariff hikes in Q1, strong domestic consumption, and external pressures such as high global food prices and double-digit inflation in Russia. Meanwhile, the short-term economic indicator showed year-on-year GDP growth of 5.8% in Q1 2025, driven by strong activity in transport, construction, manufacturing, mining, and trade sectors, with infrastructure projects and consumer lending supporting domestic demand. The next policy meeting is scheduled for June 5, 2025.