Kazakhstan Central Bank Holds Key Interest Rate Steady at 14.25%
Astana, Kazakhstan – The National Bank of Kazakhstan (NBK), the country’s central bank, announced on October 11 that it will maintain its key interest rate at 14.25%. This decision comesas the bank continues to grapple with inflation, which remains above its target level.
The NBK’s Monetary Policy Committee cited the continued slowdown in annual inflation as akey factor in its decision. Inflation rates have been gradually declining since August, with September’s rate reaching 8.3%. While this represents a decrease, it still significantly surpasses the central bank’s target.
The Monetary Policy Committeedecided to keep the base rate at 14.25% per annum, the NBK stated in a press release. The decision was based on the continued slowdown in annual inflation, which is expected to continue in the coming months.
The central bank’s decision to maintain the interest rate at its current level reflects its cautious approach to managing inflation. While the recent decline in inflation is encouraging, the NBK remains concerned about the persistent upward pressure on prices.
The NBK’s monetary policy strategy aims to achieve price stability and support sustainable economic growth.The bank has been actively using its tools, including interest rate adjustments, to manage inflation and ensure a stable macroeconomic environment.
Kazakhstan’s economy has been impacted by global economic uncertainties and geopolitical tensions, including the ongoing conflict in Ukraine. These factors have contributed to inflation and volatility in the country’s financial markets.
The NBK’s decision to hold the key interest rate steady suggests that it believes the current policy stance is appropriate for managing inflation and supporting economic growth. However, the bank will continue to closely monitor economic developments and adjust its policy as needed.
References:
- National Bank of Kazakhstan. (2024, October 11). Press Release: Monetary Policy Committee Decision. Retrieved from [Insert website link here]
- Xinhua News Agency. (2024, October 11). Kazakhstan Central Bank Maintains Key Interest Rate at 14.25%. Retrieved from [Insert website link here]
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