Kazakh central bank raises policy rate to 9.25%

Kazakhstan's central bank raises policy rate to 9.25%

Kazakhstan's central bank raised its policy rate to 9.25% from 9.0% on Monday, citing the need to prevent inflation from spiraling as the economy started to recover.

The bank said it was ready to tighten its policy further when it reviews the rate again on Sept. 13 if inflationary factors become stronger, Reuters reported.

Annual inflation in the Central Asian nation accelerated to 7.9% in June from 7.2% in May and monthly June inflation of 1.1% was the highest for that month since 2009.

The central bank said it expected full-year inflation to be above the 4-6% target range this year, but still aimed to bring it within the range next year.