On November 29, the Monetary Policy Committee of the National Bank of Kazakhstan raised the base rate by one percentage point, setting it at 15.25% per annum, according to a statement from the macro-regulator's press service. This was done in response to the sharp weakening of the tenge observed in recent days.
«The decision was made taking into account updated forecasts and an assessment of inflation risk balance (...) The overall monetary conditions have eased amid the weakening exchange rate, a decline in real interest rates due to increased inflation, as well as higher inflation forecasts for the coming years. Combined with increased volatility in financial markets, this necessitated an increase in the base rate,» the statement indicated.
Another reason cited by the regulator is significant exchange rate fluctuations in Russia.
This year, the National Bank has made decisions regarding the base rate eight times, Forbes.kz reminds us. The year began with a rate of 15.75% (set in November 2023), after which the monetary regulator gradually reduced the rate until July, when it set a rate of 14.25% for the first time that year. This level was maintained twice. The new rate of 15.25%, according to the schedule on the National Bank's website, will take effect on December 2.
The next decision on the base rate will be announced by the Monetary Policy Committee of the National Bank of Kazakhstan on January 17, 2025.
