Kazakhstan’s central bank lowered rates by 50 bps to 16% while maintaining a hawkish stance. The bank anticipates inflation nearing the lower range of its 10-12% projection for the year. Their post-meeting statement revealed limited scope for further rate cuts, suggesting additional reductions only if inflation drops to a single digit. The bank sees this scenario as improbable due to multiple inflationary pressures, including impending fiscal stimulus, unsettled inflation expectations, and a pessimistic forecast for this year’s harvest.