By Trend

National Bank of Kazakhstan raises the base rate to 16.75 percent, Trend reports, citing the press service of the Bank.

The decision was motivated by remaining inflationary pressure, existing risks for the economy, a disbalance between supply and demand, and increasing prices for food production.

According to the Bank, the possibility of another raise is slim.

Economists of the National Bank consider the current rate to be sufficient to tackle inflation in Kazakhstan. The Bank revised its inflation prognosis and expects this economic indicator to be around 20 percent in the first quarter of 2023.

Meanwhile, the base rate was increased to 14 percent in July, with a further increase to 16 percent in October. Consequently, this led to an increase in interest on deposits for the domestic population.