National Bank of Kazakhstan keeps its base rate

The National Bank of Kazakhstan kept its base rate at 14 percent. The decision was made given the balance of inflation risks in the short and medium term. The bank reported that annual inflation continued to accelerate in May, amounting to 14 percent. This was mostly led by rising food prices. Nevertheless, a moratorium on price hikes for regulated utilities, petroleum, oil and lubricants contains the inflation. Experts predicted that if the base rate remains unchanged, the inflation may reach 13 to 15 percent by the end of the year. However, the situation is expected to improve in 2023, and the inflation will gradually slow down to 7.5-9.5 percent. The next decision on the base rate will be announced on July 25.