BAKU, Azerbaijan, February 24. The National Bank of Kazakhstan (NBK) will consider the feasibility of further reducing the base rate in 2024, taking into account the need to maintain moderately tight monetary conditions in the medium term to return inflation to the target of 5 percent, a source in the NBK told Trend.
"Currently, inflation in Kazakhstan continues to gradually decline. At the end of 2023, it amounted to 9.8 percent, that is, it reached a single-digit level. At the same time, certain risks regarding inflation remain. With a further slowdown in inflation in 2024, the National Bank will consider the feasibility of further reducing the base rate, taking into account the need to maintain moderately tight monetary conditions in the medium term to return inflation to the target of 5 percent and anchor inflation expectations," the source noted.
At the same time, source pointed out that pauses in changing the base rate to accumulate data and monitor risks are not excluded.
Meanwhile, the Monetary Policy Committee of the National Bank of Kazakhstan announced its decision to reduce the base rate by 50 basis points to 15.25 percent, incorporating a corridor of +/- 1 percentage point in January.
This move follows the NBK's decision on November 24, 2023, to decrease the base rate by 25 basis points to 15.75 percent.