The National Bank of Kazakhstan trimmed its benchmark base rate by 25bps to 9 percent on April 15th, surprising markets who expected no changes. It is the first cut in borrowing cost so far this year. Policymakers said that the current decision will maintain control over the prevailing inflation background within the target range (4 percent – 6 percent) and will support economic growth. The Committee noted a slowdown in consumer prices and a positive external environment. Policymakers also said that inflation is expected to continue to decline and that the following monetary policy decisions will depend on the correspondence of the actual inflation rate and forecasts for the current year and for 2020. Interest Rate in Kazakhstan averaged 23.88 percent from 1992 until 2019, reaching an all time high of 300 percent in March of 1994 and a record low of 5.50 percent in August of 2012.
Interest Rate in Kazakhstan is expected to be 9.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Kazakhstan to stand at 9.75 in 12 months time. In the long-term, the Kazakhstan Interest Rate is projected to trend around 9.75 percent in 2020, according to our econometric models.