Tag Archives: inflation

Markets: Kazakh Central Bank decides against interest rate cut

APRIL 16 2024 (The Bulletin) — The Kazakh tenge shifted up by 0.6% after the Kazakh Central Bank decided not to cut interest rates against market expectation. It is now trading at 448.4/$1, recovering from around 476/$1 six months ago.

The Central Bank said that inflation in March measured an annualised 9.1% which was slightly above expectations and that although global grain prices were recovering from the shock of the war in Ukraine, domestic pressures were keeping prices high.

“The domestic economy is still under inflationary pressure due to strong domestic demand and unanchored inflation expectations,” it said. Kazakhstan’s Central Bank targets inflation of 5%.

In equities, analysts said that heavy flooding in north and west Kazakhstan had spooked investors who had sold off stock in Kaspi.kz, the Kazakhstan fintech company which owns a super-app that most Kazakhs use to pay bills, pay taxes and buy consumer products.

It traded down as low as $103 in the past week, having hit a high of $123 after listing on the New York Stock Exchange in January.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Kazakh Central Bank keeps interest rates steady

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JAN. 13 2023 (The Bulletin) — Kazakhstan’s Central Bank kept its key interest rate steady at 16.75% because it said that inflation was still rising, although more slowly than previously. Annualised inflation in Kazakhstan now stands at around 20.3%. In Georgia, the Central Bank said that inflation measured around 9.8%. Kyrgyzstan was the only country in the region to lower interest rates last year.

ENDS

— This story was published in issue 532 of the Central Asia & South Caucasus Bulletin, on Jan. 16 2023

— Copyright the Central Asia & South Caucasus Bulletin 2023

Kazakh inflation hits Steppe Cement profit

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JAN. 11 2023 (The Bulletin) — London-listed Steppe Cement said that high inflation in Kazakhstan would hit its profit in 2022, forcing its share price to drop by 15%. The announcement was significant because it was one of the first times that business has admitted that high inflation in Kazakhstan, at 20%, is hurting it.

ENDS

— This story was published in issue 532 of the Central Asia & South Caucasus Bulletin, on Jan. 16 2023

— Copyright the Central Asia & South Caucasus Bulletin 2023

Kazakhstan and Tajikistan increase interest rates

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ALMATY/OCT. 25 2021 (The Bulletin) — The Kazakh and Tajik Central Banks both raised their interest rates to try to dampen soaring inflation.

Commenting on pushing Kazakhstan’s interest rate up by a quarter of a percentage point to 9.75%, its highest level since April 2020, the Kazakh Central Bank said that annualised inflation hit 8.9% in September.

“The external inflation situation remains unfavourable. This is due to high world food prices, supply disruptions, rising costs of transportation, raw materials and energy, as well as the recovery of domestic demand,” it said.

On a more positive note, the Central Bank said that retail had started to recover after an easing off of the coronavirus pandemic.

In Dushanbe, the Central Bank raised its interest rate to 13.25% from 13%. It also said that inflation measured 9.6%, double its official target.

–ENDS–

— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021