Kazakhstan, Tajikistan, and Namibia Central Bank Rate Changes
October 26, 2022
Officials at the National Bank of Kazakhstan raised their policy interest rate by 150 basis points to 16.0%, which is more than a 7-year high and which follows seven increases between July 2021 and July 2022 totaling 550 basis points. CPI inflation in Kazakhstan accelerated to a 75-month high of 17.7% in September from 16.1% in August and 8.4% at the end of 2021. Food costs were up 22% in the latest month from a year earlier. “Increased inflationary expectations are putting pressure on prices and consumer behavior. All of this requires tighter monetary conditions to keep inflation under control in 2023.”
Tajikistan’s first central bank interest rate cut in 27 months was announced today, a reduction of 50 basis points to 13.0%. A 25-basis increase in August had punctuated 275 basis points of tightening going back to 2021. The cut follows a drop in on-year CPI inflation from 8.3% in July to 5.7% in September.
Officials at the Central Bank of Namibia hiked their key interest rate by 75 basis points to a 31-month high of 6.25% today, citing a need to anchor inflation expectations and safeguard the 1:1 peg of Namibia’s currency to the South African rand. The cycle of rate increases began eight months ago from a pandemic and record low of 3.75%. The new 6.25% level is below the latest CPI inflation reading of 7.1%, and officials remain open to tightening further as needed.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Namibia, National Bank of Kazakhstan, National Bank of Tajikistan
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