Key facts
- Kazakhstan's central bank cut its base rate by 100 basis points.
- Kazakhstan's new base rate is 17%.
- Kazakhstan's central bank downgraded its end-2026 inflation forecast.
- Kazakhstan aims for single-digit inflation by end-2026.
- Kazakhstan upgraded its 2026 GDP growth forecast to 4.5-5.5%.
- Kyrgyzstan's central bank maintained its key interest rate at 12%.
- Kyrgyzstan's central bank cited prevalent external inflationary trends.
- Kyrgyzstan's central bank acknowledged excess domestic liquidity.
- Kyrgyzstan's central bank committed to a tight monetary stance.
The National Bank of Kazakhstan (NBK) has implemented a significant cut to its base rate, reducing it by 100 basis points to 17%. This decision, while anticipated by the market, was larger than expected. Alongside the rate cut, the NBK has revised its economic forecasts. The bank has downgraded its inflation outlook for the end of 2026, now aiming for single-digit inflation. Concurrently, it has upgraded its projection for GDP growth in 2026, anticipating a range of 4.5-5.5%.
In a different monetary policy decision, the National Bank of the Kyrgyz Republic (NBKR) has opted to hold its key interest rate steady at 12%. The NBKR's decision is influenced by prevailing external inflationary trends. The bank also noted the presence of excess domestic liquidity within the economy. Despite these factors, the NBKR has affirmed its commitment to maintaining a tight monetary stance.