Kazakhstan Cuts Base Rate 25 bps to 16.75% as Inflation Slows to 10.3%

3 articles · Updated · Kursiv Media · Jul 24

July 24’s rate decision lowered Kazakhstan’s base rate to 16.75%, extending June’s easing after a 100-basis-point cut to 17%.
June inflation slowed for a ninth straight month to 10.3% from 10.4%, helped by tight policy, a stronger tenge, steadier consumer activity and joint anti-inflation measures.
Monthly inflation still ran at 0.8% in June, and services inflation accelerated to 9%, prompting the central bank to warn that disinflation may be losing momentum.
GDP grew 4.1% in the first half, or about 5.3% excluding mining, while investment rose 9.6% and non-commodity investment excluding public funds jumped 28.9%.
The bank said risks still skew inflationary and signaled no preset path before its Sept. 4 meeting, leaving open either a pause or a policy reversal depending on incoming data.