FX.co ★ Kazakhstan Raises Key Rate to 18% in October

The National Bank of Kazakhstan increased its key interest rate to 18% on October 10, 2025, in response to escalating inflationary pressures fueled by strong demand and accommodating monetary conditions. Inflation has risen across all primary indicators, with annual inflation reaching 12.9% in September, up from 12.2% in August, surpassing predictions as a result of surging food and service prices due to increased production and import costs. Non-food inflation climbed to 10.8%, reflecting ongoing fuel price deregulation, while inflation expectations rose to 12%, indicating enduring uncertainty. Robust domestic demand, fiscal expansion, and rapid credit growth have further stretched supply capacity, compounded by pro-inflationary risks from tax and tariff reforms. With GDP growth accelerating to 6.5% from January to August, fueled by sectors such as construction, trade, and industry, the central bank decided on a significant tightening measure to stabilize expectations and maintain the stability of tenge-denominated assets. The next interest rate decision is scheduled for November 28.