Kazakhstan cuts interest rates for the first time since 2024 as inflation continues to decline.

Kazakhstan’s National Bank Cuts Interest Rate Amid Declining Inflation

Kazakhstan’s National Bank announced a surprising decision on Friday to lower its main interest rate by 100 basis points, bringing it down to 17%. This marks the first rate cut since 2024 and comes as inflation rates continue to slow in the country.

Objectives Behind the Rate Cut

The central bank clarified that this reduction aims to decrease inflation to below 10% within the current year. Additionally, the bank seeks to achieve its medium-term target of 5%. To ensure price stability, the bank emphasized the need to maintain a moderate tightening monetary policy.

Inflation Trends in Kazakhstan

Inflation in Kazakhstan has decreased for the eighth consecutive month, reaching 10.4% in May. Despite this decline, the rate remains double the target of 5%, prompting monetary authorities to implement gradual measures to support economic stability.

Conclusion

This strategic move by Kazakhstan’s National Bank reflects its commitment to managing inflation effectively while fostering a stable economic environment. As the country navigates these challenges, the focus remains on achieving sustainable growth and price stability.

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