AKIPRESS.COM - The National Bank of Kazakhstan raised its key rate by 50 bps to 10.25% on January 24.

It is the highest interest rate since March of 2020, as the central bank said higher government spending was exacerbating inflationary pressures at the expense of the value of the national currency.

Kazakhstan’s consumer price inflation eased for a second month in a row to a five-month low of 8.4% in December of 2021, contrasting with the upward trend seen in core inflation, which various estimates see it above the target corridor.

Looking ahead, policymakers predict the national inflation rate should continue to moderate to the 6.0%-6.5% range in 2022 amid tighter monetary policies and other measures.