Kazakhstan’s central bank has initiated a rate-cutting cycle by cautiously reducing its benchmark interest rate by 25 bps to 16.50%. This move is consistent with the recent deceleration in inflation and decreasing external inflationary pressures. However, the bank stressed that the room for further monetary easing is limited due to potential fiscal stimuli. The bank also upgraded its GDP outlook, projecting 4-5% growth in 2024-2025. The cautious approach signals a fine balance between stimulating economic activity and controlling inflation.