TheNational Bank of the Republic ofKazakhstan decided to lower the base rate to 15%, with a band ofplus or minus 1 percentage point from the rate.

TheAlmaty-based central bank last made a rate decision March 14, when itmaintained the base rate at 17% with a symmetric interest rate corridor of plusor minus 2 percentage points. It said the balance of risks between pricestability and financial stability has improved since its last decision,weakening the case for high interest rates.

Thecentral bank said a gradual rise of Kazakh tenge-denominated high interest rateliabilities increases the risks to financial stability.