June 15, 2023 12:14 pm | Updated 02:58 pm IST - ASTANAKazakhstan's Central Bank may have to stick to a tight monetary policy stance against the backdrop of elevated external uncertainty and growing state spending, the International Monetary Fund (IMF) warned on June 15. The Central Bank said this month it could consider cutting its key rate in the coming months, but the IMF said, "Policy should remain tight in 2023 until inflation is firmly on a downward trend and inflation expectations are re-anchored." Also Read | Central Asian foreign policy multi-vectorism pays offRisks for the economy of the oil-rich Central Asian nation include slower growth of trading partners, further declines in the price of crude, and disruptions to the Caspian Pipeline Consortium (CPC) export pipeline, the IMF said. Secondary sanctions and social tension that could surge again to delay fiscal consolidation and reforms, were additional factors, it added. Also Read | Understanding the protests in Kazakhstan"The expansion of public spending in the revised 2023 budget is substantial," the Fund's mission said in a statement after visiting Kazakhstan.

Source: The Hindu June 16, 2023 03:27 UTC