Kazakhstan's National Bank rules out rate cuts in 2025, signals possible hikeKazakhstan's National Bank Governor Timur Suleimenov ruled out base rate cuts for 2025 on Thursday, signaling the central bank may maintain or even raise the current 16.5% benchmark to combat persistent inflation."Our projections indicate the base rate should remain at least at this level throughout 2025," Suleimenov told reporters. "Based on today's completed forecast round, we anticipate the rate will stay at this level or potentially tighten further next year," he added.The governor declined to specify how long the 16.5% rate would remain in effect, noting that economic conditions both domestically and globally remain fluid. "These are model-based projections; many factors will change both within our economy and in external macroeconomic conditions."Suleimenov emphasized that monetary tightening and rate hikes represent the bank's primary tool against peak inflation. "As we saw in 2022 when inflation exceeded 21%, the base rate proved decisive in bringing inflation down to 8.4-8.5% by last year," he said. "The rate works effectively, albeit with time lags. The inflation trajectory demonstrates this, and we will continue this policy."The National Bank has maintained its tightening stance since December 2022, when inflation hit a two-decade high. While consumer price growth has moderated, May's 0.9% monthly inflation reading significantly exceeded historical averages, keeping policymakers cautious. (ICE ALMATY)

Fonte notizia: INTERFAX