National Bank Increases Base Rate to Combat Economic Challenges, Analyst Reveals
The National Bank of Kazakhstan Raises Base Rate Amid Economic Uncertainty
ASTANA — The National Bank of Kazakhstan (NBK) has made a significant decision to raise the base rate from 15.25% to 16.5%, marking a 1.25 percentage point increase in response to growing economic uncertainty. This move comes as a preemptive measure to address concerns over rising tariffs, a planned VAT hike, and economic deregulation that could potentially accelerate inflation.
Independent financial analyst Rassul Rysmambetov emphasized the need for this action, citing shifts in U.S. policies under the Trump administration as a key factor affecting Kazakhstan’s economy. Additionally, President Kassym-Jomart Tokayev’s decree on economic liberalization last May and the government’s proposal to increase VAT have contributed to inflation expectations.
Rysmambetov highlighted the global changes impacting Kazakhstan and the world economy, noting the ongoing tariff war between the US, Europe, Canada, Mexico, and China. As an oil-producing state, Kazakhstan is expected to feel the consequences of these developments. Therefore, he suggested a review of current plans to adapt to the changing global economic landscape.
The decision to raise the base rate reflects the NBK’s proactive approach to addressing economic challenges and ensuring stability in Kazakhstan’s financial system. As uncertainties persist in the global markets, it is essential for policymakers and financial institutions to monitor and respond to changing economic conditions effectively.
