Kazakhstan central bank keeps policy rate unchanged at 9.0pc

ALMATY: Kazakhstan's central bank kept its policy rate unchanged at 9.0% on Monday, but warned it could hike it later this year if it saw greater risks to its inflation target.

The oil-exporting nation's central bank aims to keep inflation within 6.0% this year and identified increased domestic spending and expectations of global economic slowdown as among the key risks to the economy.

Consumer prices rose 5.4 percent year-on-year in June, and the bank said its poll showed an increase in full-year inflation expectations to 5.4 percent last month from 4.7 percent in May.

The former Soviet republic increased public sector wages and welfare payouts in June ahead of the snap presidential election which handed power to Kassym-Jomart Tokayev, a loyal ally of veteran leader Nursultan Nazarbayev who resigned in March.

The central bank said it would next review its policy rate on Sept. 9.