Half Percentage Point Cut in Kazakhstan’s Central Bank Interest Rate
January 19, 2024
The National Bank of Kazakhstan’s base rate has been lowered for the fourth time since last July. The 50-basis point decline to 15.25% brings the cumulative drop so far to 150 basis points and has been justified by the deceleration of consumer price inflation to 9.8% in December from 21.3% ten months earlier. According to a released statement, “in the absence of shocks, the gradual reduction of the base rate will continue, with the possibility of intermittent pauses. Nevertheless, the decline cycle can be long.” Officials seek a 5% inflation target, and so far the pace of deceleration has more or less conformed to their expectations. Following a pandemic low base rate level of 9.0% maintained for the year through July 2021, the rate was lifted by 75 basis points in the rest of 2021 and 700 basis points during 2022.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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