Larger-than-Expected Interest Rate Hike by National Bank of Kazakhstan – Currency Thoughts

Larger-than-Expected Interest Rate Hike by National Bank of Kazakhstan

October 10, 2025

Kazakhistan faces a far different inflationary situation than Peru, and officials at the National Bank of Kazakhstan today made a statement of serious intention to counter price pressures by hiking their reference interest rate to 18.0%, higher than such has been in over a decade, from 16.5%. This latest increase followed ones of 100 basis points last November and 125 bps in March. Consumer price inflation in their economy had dropped from 21.3% in 2023 to a 27-month low of 8.3% in September 2023 but had risen back to 12.9% by last month, which is more than double the target of 5%. Real GDP growth in Kazakhstan this year has exceeded 6.0%.

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: National Bank of Kazakhstan

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