Kazakh and Azerbaijani Central Banks raise interest rates

DEC. 19 2022 (The Bulletin)  — So, a couple of days after the Kyrgyz Central Bank unexpectedly cut its interest rate and said that inflation was slowing, Central Banks in Kazakhstan and Azerbaijan did the opposite.

And these are Central Banks that are both worth following, but for different reasons.

The Kazakh Central Bank helps to manage the largest economy in the region and one of the most closely watched currencies. How the tenge rolls matters.

As for the Azerbaijani Central Bank, it manages a fixed currency but is important for another reason. It rarely makes monetary moves, meaning that when it does – you need to notice.

And in both instances, the Central Banks said that they were raising their core interest rate because inflation was still rising. Does this mean that we will see an embarrassing reversal of Kyrgyz monetary policy over the next few months? That they have it wrong? Possibly. Most Central Banks say that inflation is still rising, but at a slower rate.


— This story was published in issue 531 of the Central Asia & South Caucasus Bulletin, on Dec. 19 2022

— Copyright the Central Asia & South Caucasus Bulletin 2022

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