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Kazakhstan's central bank raises policy rate to 9.75per cent

Kazakhstan's central bank raises policy rate to 9.75per cent

FILE PHOTO: Kazakh 200 tenge coins are pictured in front of a U.S. 100 dollar banknote in this illustration taken March 10, 2020. REUTERS/Pavel Mikheyev

ALMATY : Kazakhstan's central bank raised its policy rate to 9.75per cent from 9.5per cent on Monday, citing runaway inflation and saying it would maintain a stance aimed at curbing price growth.

The move had been anticipated by the market amid global energy and food price woes and rate hikes by numerous other central banks including that of Kazakhstan's major trade partner Russia.

Annual inflation in the oil-exporting Central Asian nation reached 8.9per cent in September and the central bank reiterated in its statement that it hoped to bring it back into the target range of 4-6per cent next year.

"The decision has been made against the backdrop of persistent inflationary pressure in the economy as a result of which inflation remains above the 2021 forecast range of 7.5-8.5per cent...," the bank said, adding that it would next review the rate on Dec.6.

"The central bank will continue implementing a disinflationary monetary policy based, among other factors, on the analysis of the effectiveness of (the government's) anti-inflation measures."

(Reporting by Mariya Gordeyeva, Writing by Olzhas Auyezov, Editing by Andrew Cawthorne and Timothy Heritage)

Source: Reuters

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