Kazakh banks start lowering deposit rates after NBK cuts base rate to 16.75%
This digest was compiled by AI from multiple sources — links to the originals are below.
Home Credit Bank reduced rates on select deposits and certificates by 0.5 percentage points from August 1, with the highest nominal rate dropping from 18.65% to 18.24%. Freedom Bank Kazakhstan will cut rates on new three-month “Strategy” deposits to 18.09% nominal from August 6, followed by changes to “Capital” deposits from August 7. The moves come after the National Bank of Kazakhstan lowered its base rate to 16.75% on July 24, the second consecutive reduction.
The Rate Cuts
Home Credit Bank lowered nominal rates on “Savings Home+” three-month deposits from 18.65% to 18.24%, with the annual effective rate dropping from 20.50% to 20.00%. Its 12-month deposit certificates saw a cut from 19.5% to 19.0%, and two-year certificates from 18.75% to 18.25%. Freedom Bank Kazakhstan will offer new “Strategy” three-month deposits at 18.09% nominal from August 6, and “Capital” one-month deposits at 16.95% from August 7. Altyn Bank also announced rate reductions without specifying new values.
NBK Policy Shift
On July 24, the National Bank of Kazakhstan cut its base rate from 17% to 16.75%, after a June reduction from 18% to 17%. The regulator cited slowing inflation, which fell to 10.3% in June from 10.4% in May, declining for the ninth consecutive month. The NBK stated that future decisions will depend on inflation dynamics, consumer demand, and fiscal policy execution.
Economic Impact
Despite the base rate cuts, real interest rates rose to 6.7% in the first half from 5.7%, as inflation decelerated faster, according to the Kazakhstan Finance Association. This tightened monetary conditions, contributing to retail trade growth slowing to 3.6% in January–May from 6.5% a year earlier. Consumer lending contracted 8% in the same period after a 17.8% increase a year ago.
What's Next
The NBK’s next base rate decision is expected in late August, with analysts watching whether monetary easing continues. It remains uncertain how quickly banks will further adjust deposit rates if the base rate is cut again.
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Kazakh banks start lowering deposit rates after NBK cuts base rate to 16.75%
