Kazakhstan's central bank cuts base rate again

Kazakhstan's National Bank has cut its base rate from 16.25% to 15.75% a year, keeping a corridor of ±1 percentage point. The bank had already lowered the rate from 16.75% to 16.25% in early September.

The regulator said annual inflation has fallen for twelve months in a row amid moderately tight monetary policy and a favourable tenge exchange rate. Inflation stood at 9.3% in September, with food inflation at 8.5% and non-food inflation at 11%. One-year-ahead inflation expectations eased to 11.8% from 12.1% in August.

GDP grew 4.2% in January–September, driven by non-commodity sectors such as construction, manufacturing and transport. The bank said risks remain skewed toward higher inflation and that a further rate change before year-end is unlikely. The next scheduled decision will be announced on December 4.