ALMATY: Kazakhstan's central bank cut its policy rate to 9.75 percent from 10.25 percent in a surprise move on Monday, citing a decline in the inflation rate and positive external factors such as higher oil prices.
The central bank said in a statement it may cut the rate further this year if the situation on global markets remains favourable and the economies of Kazakhstan's main trading partners perform well.
The market had expected the regulator to stick to its cautious policy stance and keep the rate unchanged, with only one of seven analysts polled by Reuters last week predicting a modest cut.
Annual inflation in the oil-exporting former Soviet republic slowed to 7.1 percent in December from 7.3 percent in November, falling within the central bank's 2017 target range of 6-8 percent.
This year the central bank targets inflation within the 5-7 percent range. It will next review its policy rate on March 5.
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