Interest Rate in Kazakhstan
Kazakhstan - Interest Rate
Central Bank holds fire in June meeting as inflation picks up
The National Bank of Kazakhstan held the base rate at 9.00%, with an interest rate corridor of plus or minus 1.0 percentage point, at its latest monetary policy meeting on 3 June. The decision follows a rate cut by 25 basis points at its previous meeting on 15 April.
Within-target inflation and relatively low inflation expectations prompted the Bank to stay put. Inflation climbed to 5.3% in May from 4.9% in April, lifted by a broad-based upturn in prices but mainly reflecting higher food costs. Rising price pressures limited the room for another rate cut despite growth dynamics showing signs of weakness and the economy slowing in the first quarter due to faltering industrial activity.
The communiqué was devoid of substantive forward guidance and indicated only that future decisions will be guided by the Bank’s expectations on the trajectory of inflation relative to the 4.0%–6.0% target band, along with overall economic conditions and external factors. The Bank did note, however, that key downside risks to inflation stem from increasing supply and falling demand, while the main risk on the external front stems from the impact of the U.S.–China trade conflict. FocusEconomics panelists see the rate being slashed again before year-end.
The next meeting is scheduled for 15 July 2019.
FocusEconomics panelists see the base rate ending 2019 at 8.83%. Looking ahead, the Central Bank is expected to continue trimming the interest rate, and our panelists see the rate ending 2020 at 8.35%.
Kazakhstan - Interest Rate Data
|Policy Interest Rate (%)||6.50||6.50||16.00||12.00||10.25|
5 years of economic forecasts for more than 30 economic indicators.
Kazakhstan Interest Rate Chart
|Exchange Rate||384.0||0.32 %||Jun 14|
|Stock Market||0.1||0.0 %||Jun 14|
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June 4, 2019
Acting President Kassym-Jomart Tokayev is on course to win the snap election scheduled for 9 June, with the tightly controlled and opaque electoral process meaning that opposition candidates stand little chance.
June 3, 2019
Consumer prices rose 0.6% over the previous month in May, slightly above April’s 0.5% month-on-month upturn.
June 3, 2019
The National Bank of Kazakhstan held the base rate at 9.00%, with an interest rate corridor of plus or minus 1.0 percentage point, at its latest monetary policy meeting on 3 June.
May 20, 2019
Economic growth declined to 3.8% in annual terms in January–March, from the 4.1% year-on-year expansion recorded in January–December 2018, according to a preliminary estimate released on 20 May. A breakdown of key sectors revealed that industry grew at a notably softer pace of 3.2% in January–March, down from 4.2% in January–December 2018.
May 17, 2019
The industrial sector decelerated notably in April, growing 1.9% over the same day last month.