National Bank of Kazakhstan Holds Refinancing Rate at 7.50%

The National Bank of Kazakhstan held its key refinancing rate unchanged at 7.50% as inflationary pressures ease somewhat.  NBK Chairman, Grigori Marchenko, said that the central bank will not revise its 2011 inflation target of 6-8%, after the “lower-than-expected” inflation reading in September.  The Market does not expect any interest rate changes in the near term.  Kazakhstan’s central bank last increased the interest rate in March this year by 50 basis points to 7.50%.  


Kazakhstan reported inflation of 8.7% in September, compared to 9.0% in August, and 8.50% in July, and above the official inflation target of 8 percent.  Kazakhstan’s economy grew at an annual pace of 6.8% in the March quarter (6.4% in December 2010).  Kazakhstan recently returned its currency, the Tenge, to a “managed” free float, abolishing the tenge’s trading corridor at the end of February.  The Kazakhstani Tenge (KZT) last traded around 148 against the US dollar.
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