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Kazakhstan central bank seen raising rate to 9.75per cent in October: Reuters poll

ALMATY : Kazakhstan's central bank is expected to raise its key policy rate by 25 basis points on Monday as it tries to curb inflation, a Reuters poll showed on Friday.

Six of the nine analysts polled by Reuters between Oct. 18-22 said they expected an increase to 9.75per cent, with one analyst forecasting a 50-basis-point hike and two saying the regulator will hold the rate at the Oct. 25 meeting.

In September, the bank raised the policy rate to 9.50per cent from 9.25per cent.

Annual inflation accelerated to 8.9per cent in September from 8.7per cent a month earlier, the fifth increase in a row.

"Given a pick-up in economic activity the balance of risks remains tilted towards the acceleration of inflation," Eurasian Development Bank chief economist Yevgeny Vinokurov said.

Analysts also cited external factors amid a global trend towards monetary tightening as more economies recover from pandemic-induced slumps.

"I expect the rate to be hiked to 10per cent due to the persistence of strong inflationary pressure against the background of the energy crisis and rapid global food price inflation," said Aibek Burabayev, deputy director of financial markets at ICBC Almaty.

"Plus, Kazakhstan continues to import inflation from its main trade partner Russia."

Russia's central bank is reviewing its key rate on Friday and analysts also expect a hike.

(Reporting by Mariya Gordeyeva; Writing by Olzhas Auyezov; Editing by Kim Coghill)

Source: Reuters


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