The Monetary Policy Council of the National Bank has decided to keep the key rate at 16.5%. According to the NB chairman Timur Suleimenov, the decision was based on the analysis of inflation and current economic trends, influenced by both internal and external factors.
"Pressure on prices in the economy continues. The main contributions to the inflation increase come from the rising cost of paid services and food. The stable component of inflation has also slightly increased. Although monthly inflation has been slowing down in recent months, it still exceeds long-term indicators," he emphasized.
The economic growth rates in Kazakhstan have increased from 4.8% last year to 6% in the first five months of the current year. The demand still exceeds supply capabilities, putting pressure on prices.
Simultaneously, the external sector is characterized by high instability in global markets and growing uncertainty in light of trade conflicts and increased tensions in the Middle East. Global food prices remain high.
In such circumstances, to strengthen trust in inflation expectations and form a sustainable trend of inflation reduction, the National Bank intends to maintain moderately tight monetary conditions for an extended period.
According to Timur Suleimenov, it is likely that the key rate will remain at the current level until the end of 2025.