Analysts Surprised by Another Interest Rate Hike in Kazakhstan
July 25, 2022
The National Bank of Kazakhstan, one of the former members of the USSR, became the latest central bank with a policy rate increase to fend off runaway inflation. The interest rate increase of 50 basis points to 14.5% follows earlier increases of 50 basis points in April, 325 basis points in February, 50 bps in January, and a trio of 25-bp moves in July, September and October of 2021. The pandemic low of 9.0% had prevailed previously for a year. At 14.5%, the new policy rate level merely matches on-year CPI inflation, which has accelerated from 8.5% in January to 14.5% last month. This is well above a target centered on 5%, and officials concede that inflation will be higher than their latest prediction this year and probably not crest until early in 2023.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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