Tengrinews.kz — On Friday, April 24, the National Bank of Kazakhstan made a decision on the base rate. It has been kept at 18 percent per annum with a corridor of +/- 1 percentage point.
According to the National Bank’s statement, annual inflation slowed from 11.7 percent to 11 percent in March. The slowdown was supported by moderately tight monetary conditions, positive exchange rate dynamics, stabilization of consumer demand, including against the backdrop of slower consumer lending growth, as well as a moratorium on increases in housing and utility prices, fuel prices, and other anti-inflationary measures introduced by the government.
“The current disinflationary processes are supported by the gradual normalization of consumer demand, including a slowdown in retail lending. This trend is taking shape amid persistently moderately tight monetary conditions and measures being implemented to reduce excess liquidity, including higher minimum reserve requirements and mirroring operations. The strengthening of the tenge is also supporting disinflation,” the National Bank said.
According to the regulator, the current disinflationary trend still needs to be firmly consolidated.
“The National Bank will continue to assess the pace of inflation slowdown, the dynamics of domestic demand, the actual implementation of fiscal consolidation, the parameters of quasi-fiscal stimulus and regulated prices, as well as the external environment and its impact on inflationary processes. If current trends continue and no new shocks emerge, the National Bank will be ready to consider the possibility of lowering the base rate in future decisions,” the regulator’s press service added.
What the base rate is
The base rate is the main instrument of the National Bank’s monetary policy. It shows the interest rate at which banks can borrow money and largely determines the rates on loans and deposits for the population and businesses.
According to the National Bank, changes in the rate do not immediately affect inflation, but usually begin to have a noticeable impact after about 12–18 months. In the short term, the effect of rate changes is weaker.
Earlier, the National Bank shared its plans regarding the base rate. According to the regulator, it intends to maintain the current monetary conditions, including the base rate, until the end of the first half of 2026.
How the base rate has changed
Kazakhstan began 2025 with a base rate of 15.25 percent.
On March 7, the National Bank raised the base rate to 16.5 percent, explaining the decision with updated forecasts for inflation and economic growth.
On October 10, the National Bank raised the base rate to 18 percent, where it remained until the end of the year.
On January 23, 2026, the regulator again kept the rate unchanged at 18 percent per annum with a corridor of +/- 1 percentage point.
How the base rate works
Changes in the base rate affect inflation through money market interest rates and the exchange rate. When the base rate rises, money in the economy becomes "more expensive" — interest rates on loans and borrowings increase. As a result, both businesses and households tend to spend less and save more. Lower consumption slows price growth, thereby restraining inflation.
How the base rate affects the tenge
When the National Bank lowers the base rate, money becomes cheaper. In the short term, this usually leads to weakening of the tenge — participants in the foreign exchange market expect the exchange rate to decline and begin to play against the national currency. In the long term, however, lower rates may slow inflation, which could strengthen the tenge.
How often the rate is changed
Decisions on whether to raise or lower the base rate are made by the National Bank’s Monetary Policy Committee. Its meetings are held eight times a year according to a pre-approved schedule.
The next decision on the base rate will be announced by the Monetary Policy Committee on June 5 at 12:00 Astana time.
