Kazakhstan central bank cuts rate to 9.25pc, expects lower inflation

ALMATY: Kazakhstan's central bank cut its policy rate to 9.25 percent from 9.50 percent on Monday, its third such move this year, citing expectations of lower inflation.

Some analysts had expected the regulator to pause the monetary easing after turbulence caused by the drop of the Russian rouble which dragged the local tenge currency to a three-month low this year.

But the central bank said the tenge movements had been moderate and short-term and added that it would continue the policy of gradual rate cuts this year. It will next review the rate on June 4.

Overall external conditions are positive, it said, citing strong prices of oil, Kazakhstan's main export.