National Bank of Kazakhstan raises key rate to 16.5%

The National Bank of Kazakhstan has raised the key interest rate by 1.25 percentage points today, from 15.25% to 16.5%, according to the financial regulator.

The bank's press service stated that the rate hike was prompted by rising inflation, which reached 9.4% in February.

The National Bank of Kazakhstan aims to reduce inflation to 5%. 

Prices are rising mainly due to increased service costs, high demand, and active consumer lending. External factors, such as the situation in Russia and high global commodity prices, also contribute to inflationary pressure.

The bank predicts inflation will reach 10-12% in 2025, 9-11% in 2026, and decline to 5.5-7.5% by the end of 2027.

This will stabilize both short-term and long-term inflation expectations, preventing a continued rise in prices,” the statement said. It also emphasized that the decision would help preserve purchasing power, protect savings, and boost confidence in tenge assets.

Economic growth is expected to slow to 4.2-5.2% in 2025-2026, though reforms aimed at increasing fixed capital investment, foreign direct investment, and economic liberalization may spur acceleration.

Previously, the key rate was increased by 1 percentage point to 15.25% in December 2024, and it remained unchanged in January 2025.

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