Tag Archives: interest rates

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.

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— 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.

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— 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

Georgian and Kyrgyz Central Banks keep interest rates steady

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OCT. 25/27 2021 (The Bulletin) — The Georgian and Kyrgyz central banks both decided to keep their interest rates steady but warned that accelerating inflation may force more rises. Georgia raised its interest rate to a 13-year high of 10% in August. It said that inflation was now measuring around 12%. As for Kyrgyzstan, it kept its interest rate at 7.5% and said that external factors were driving inflation.

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

— Copyright the Central Asia & South Caucasus Bulletin 2021

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.

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

— Copyright the Central Asia & South Caucasus Bulletin 2021

Armenia raises interest rate to highest level since Dec. 2016

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YEREVAN/JUNE 15 2021 (The Bulletin) — Armenia’s Central Bank said that the economy had rebounded faster than expected from both losing a war against Azerbaijan and also from the coronavirus pandemic, giving PM Nikol Pashinyan a boost ahead of a tight election.

The Central Bank also raised interest rates by half a percentage point to 6.5%, its highest level since 2016, strengthening the Armenian dram against the US dollar.

“Gross demand is recovering faster than expected, mainly due to the rapid growth of global demand, increased remittances, the high growth rate of private consumption, while private investment activity remains weak,” the Central Bank said in its statement.

Armenians vote in a parliamentary election on June 20. Polls put Mr Pashinyan ahead of his main contender, former president Robert Kocharyan, but they have also suggested that he may not win a majority.

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— This story was published in issue 48 of the Central Asia & South Caucasus Bulletin, on June 16 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbekistan keeps interest rates steady, says inflation is too high

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MARCH 11 (The Bulletin) — Uzbekistan’s Central Bank declined to cut its key interest rate from 14% because it said that inflation was still too high. Inflation in Uzbekistan is currently at 11.4%, pushed up by rising domestic demand, an increase in global food prices and a rise in fuel prices. Uzbekistan’s interest rate has measured 14% since mid-2020.

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— This story was published in issue 475 of the Central Asia & South Caucasus Bulletin, on March 15 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyzstan increases interest rate by 0.5%

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FEB. 24 2021 (The Bulletin) — Kyrgyzstan’s Central Bank increased its key interest rate by half a percentage point to 5.5% to counter rising inflation, its first rise since February 2020. The coronavirus pandemic and a coup in October has pressured the Kyrgyz som which is trading at around 84/$1, a fall of around 20%. This fall in the value of the som has pushed up inflation.

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Armenian Central Bank raises interest rate to support currency

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FEB. 2/3 2021 (The Bulletin) — Armenia’s Central Bank raised its key interest rate to 5.5% from 5.25% to strengthen its currency, the dram, which has dropped 6% since it lost a war against Azerbaijan for control of Nagorno-Karabakh last year. In neighbouring Georgia, the Central Bank there kept its key interest rate steady at 8% because it said that inflation had stalled because of the pandemic.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Azerbaijan cuts interest rates

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JULY 30 (The Bulletin) — Azerbaijan’s Central Bank cut its core interest rate by a quarter of a percentage point to 6.75%, its lowest rate for more than four years, to try to stimulate lending and its economy. Like the rest of the region, analysts have said that the coronavirus pandemic may tip Azerbaijan’s economy into a recession, although it is protected by cash earned from oil and gas sales.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

Armenia and Uzbekistan keeps interest rates steady

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JULY 23/28 (The Bulletin) — The Central Banks of Armenia and Uzbekistan kept their interest rates unchanged, despite pressure to cut the cost of borrowing to help businesses fight an expected recession linked to the coronavirus pandemic. Armenia’s Central Bank said that despite deflationary pressures, its consumer price index still measured a 1.7% rise in prices over the past 12 months.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.