Kazakhstan c.bank cuts key rate 50 bps to 7.5 pct

Aug 7. Reuters. ALMATY

Kazakhstan’s central bank said on Friday it will cut its key refinancing rate by 50 basis points to a four-year low of 7.5 percent from Aug. 10.

“The rate cut is linked to the decline of annual inflation to 6.9 percent in July 2009 as well as the overall decrease in rates on the domestic interbank market,” it said in a statement.

The central bank has already cut the rate six times this year in the same 50 basis-point steps.

Consumer price growth in Kazakhstan has slowed down this year as its oil-driven economy started to contract in the wake of the global crisis.

The government expects gross domestic product to grow by up to 1 percent this year after contracting in the first half, but many economists see the economy still contracting in the whole of 2009.