Kazakhstan’s National Bank cut its policy rate from 16.25 percent to 15.75 percent after annual inflation slowed to 9.3 percent in September. Household inflation expectations also declined. The bank kept its rate corridor unchanged and assessed the likelihood of another change before year-end as low, pointing to public spending and global energy and food prices as risks.
The National Bank of Kazakhstan, the country’s central bank, cut its policy rate from 16.25 percent to 15.75 percent on October 23. The rate corridor remained one percentage point above and below the policy rate.[1], [2]
The bank said monetary conditions remained moderately tight after the reduction. It assessed the likelihood of another rate change before year-end as low and scheduled its next decision for December 4.[1]
Annual inflation eased to 9.3 percent in September, its twelfth consecutive decline according to the bank. Food inflation fell from 9.5 percent to 8.5 percent, non-food goods inflation declined from 11.4 percent to 11 percent and services inflation stayed at 8.9 percent. Monthly headline inflation remained 0.6 percent.[1]
Households’ one-year inflation expectations fell from 12.1 percent to 11.8 percent. The bank said public and quasi-public spending and investment continued to sustain demand, while consumer lending was normalising. Preliminary January–September economic growth was 4.2 percent and investment rose 7 percent. It identified global energy and food prices among inflation risks and projected inflation reaching its 5 percent target in 2028.[1]
