Kazakh central bank raises policy rate to 10.25%

Kazakh central bank raises policy rate to 10.25%

Kazakhstan's central bank raised its main interest rate to 10.25% from 9.75% on Monday.

The bank said it expects inflation to slow to 6.0-6.5% this year from last year's 8.4% thanks to tighter monetary policy and other measures to curb consumer price growth.

The bank said increased government spending was exacerbating inflationary pressures and negatively impacted the local tenge currency's stability.

Amid expected policy tightening by the U.S. Federal Reserve and the European Central Bank, foreign investors have significantly reduced their holdings of tenge-denominated bonds, the bank said.

The regulator will next review its policy rate on March 9.

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