11.04.202507:31:16UTC+00Kazakhstan Maintains Key Rate at 16.5%

The National Bank of Kazakhstan held steady on its key interest rate, maintaining it at 16.5% during the meeting on April 11, 2025. This rate is the highest observed since September 2023. The decision reflects ongoing concerns over elevated inflation, primarily fueled by increased costs in the services sector, as well as surging food prices and regulated tariffs. As of March, headline inflation climbed to 10%, aligning with the central bank's forecasted range of 10-12% for 2025. Influencing these price hikes were tariff increases in the first quarter, robust domestic consumption, and international factors such as high global food prices and persistent double-digit inflation in Russia. On the economic front, the short-term indicator revealed a GDP growth of 5.8% year-on-year for the first quarter of 2025, driven by vitality in the transport, construction, manufacturing, mining, and trade sectors, underpinned by infrastructure projects and consumer lending that bolstered domestic demand. The subsequent policy review is planned for June 5, 2025.