National Bank of Kazakhstan keeps base rate unchanged

Tengrinews.kz - The National Bank of Kazakhstan has made a decision on the base rate. It will remain at the current level of 16.5 percent per annum with a corridor of +/- 1 percentage point.

How the base rate changed in 2025

Since the beginning of the year, the National Bank has met five times to review the base rate.

The first meeting took place on January 17, when the rate was kept unchanged at 15.25 percent. On March 7, the regulator raised it to 16.5 percent, citing updated forecasts for inflation and economic growth.

On April 11, the National Bank again left the rate at 16.5 percent, taking into account the current inflationary situation and the balance of risks. A similar decision followed on June 5—the rate was kept at the same 16.5 percent, based on an analysis of actual data and updated inflation forecasts.

What is the base rate?

The base rate is the percentage at which the National Bank lends short-term funds to commercial banks and accepts their deposits. It plays a crucial role in setting borrowing costs for consumers and influences inflation levels in the country. In simple terms, the base rate serves as a benchmark for the economy, particularly for the banking sector. The National Bank adjusts the rate based on economic indicators, using it as a primary tool of monetary policy.

How does the base rate affect the economy?

The central bank uses the base rate to regulate the money supply and, ultimately, inflation. By raising or lowering the rate, the regulator influences economic activity. A lower rate injects more money into the economy, making loans cheaper for businesses, increasing investments, and stimulating economic growth. Conversely, raising the rate helps curb inflation by reducing the money supply and encouraging savings over spending and investment.

Impact of a rate cut on the tenge

A reduction in the base rate may weaken the national currency in the short term, as cheaper money can prompt investors to sell off tenge assets. However, economic growth and lower inflation could strengthen the currency in the medium term.

National Bank governor shares 2025 base rate forecast