FX.co ★ Kazakhstan Holds Key Rate at 16.5%

The National Bank of Kazakhstan opted to keep its key interest rate steady at 16.5% during its meeting on June 5, 2025. This decision, which aligns with market expectations, aims to nurture the ongoing disinflationary trend. In May 2025, Kazakhstan witnessed an increase in its annual inflation rate to 11.3%, marking the sixth consecutive monthly rise and reaching the highest point since September 2023. This inflation rate significantly exceeds the bank’s target of 5%. Updated projections suggest that inflation will settle in the range of 10.5% to 12.5% in 2025, then ease to 9.5% to 11.5% in 2026, and eventually decline further to 5.5% to 7.5% by the end of 2027. Meanwhile, buoyed by robust domestic demand and elevated investment levels, the economic growth forecast for Kazakhstan has been upwardly adjusted to 5% to 6% for 2025 and 4% to 5% for 2026.