The National Bank of Kazakhstan’s Monetary Policy Committee cut the base rate by 50 basis points to 15.75%, citing sustained declines in inflation and inflation expectations while retaining moderately tight monetary conditions, extending an easing cycle begun in June from 18%. The interest-rate corridor remained at ±1 percentage point. Annual inflation slowed to 9.3% in September, although underlying price pressures persisted, and policy remained aimed at returning inflation to the 5% target by 2028. Preliminary data showed gross domestic product grew 4.2% in January–September 2026, led by construction, manufacturing and transport. Normalising consumer lending growth moderated consumption growth, but fiscal and quasi-fiscal stimulus continued to support strong domestic demand. Favourable tenge exchange-rate dynamics also supported disinflation. External conditions remained inflationary as Middle East tensions sustained high energy prices, global food prices rose and global monetary conditions tightened. With risks tilted toward higher inflation and utility-tariff base effects potentially lifting annual inflation near year-end, the central bank said further rate changes were unlikely before the end of 2026 and additional cuts would depend on sustained easing of price pressures.
National Bank of Kazakhstan Cuts Base Rate by 50 Basis Points to 15.75%
The National Bank of Kazakhstan cut its base rate by 50 basis points to 15.75% as annual inflation slowed to 9.3% in September and inflation expectations declined. With inflation risks tilted upward, the central bank said further rate changes were unlikely before the end of 2026 and additional cuts would depend on sustained easing of price pressures.