Central Banks

Kazakhstan Raises Key Rate to Record-High 18% to Curb Inflation

Shoppers walk past stalls near the Green Bazaar in Almaty.Photographer: Taylor Weidman/Bloomberg

Kazakhstan increased borrowing costs to the highest on record as officials battle to tame inflation amid ambitious plans to grow the economy.

The National Bank of Kazakhstan raised the key rate by 150 basis points to 18% on Friday. None of the five economists surveyed by Bloomberg expected the move, with four predicting smaller hikes and one forecasting no change.