The National Bank of Kazakhstan raised its benchmark overnight policy by 25 bps to 9.25 percent on September 9th, 2019 while markets had anticipated it to remain steady at 9 percent. Policymakers noticed that upside risks to inflation continued to rise due to an increase in domestic demand. The annual inflation rate slowed to 5.2 percent in August 2019, from 5.4 percent in July, but remained at the top of the target corridor of 4 percent – 6 percent. Interest Rate in Kazakhstan averaged 23.48 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 9.25 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 9.50 in 12 months time. In the long-term, the Kazakhstan Interest Rate is projected to trend around 9.50 percent in 2020, according to our econometric models.