Kazakhstan's central bank raised its policy interest rate to 14.5% from 14% on July 25. It made the move based on expectations that inflation could exceed its earlier 13%-15% forecast in 2022 and only begin slowing in the first quarter of 2023.
The central bank said global supply chain disruptions and a fiscal stimulus have contributed to inflation this year. The Kazakh national currency, the tenge, has weakened significantly against the Russian ruble in recent months amid Moscow introducing capital controls and cutting imports. Kazakhstan imports a large share of its consumer goods from Russia - as such, exchange rate movements tend to influence inflation.
Kazakh consumer prices grew by 14.5% y/y in June, up from 14% in May.
The central bank will hold its next rate review session on September 5.