(Adds detail, context)
ALMATY, April 7 (Reuters) - Kazakhstan's central bank
kept its main interest rate unchanged at 16.75% on Friday,
saying growing state spending and expected fuel and energy price
increases would keep inflationary pressure high in the near
term.
The bank said it continued to believe there was no space for
monetary easing in the second quarter.
Analysts polled by Reuters this week had forecast the rate
would remain unchanged even though annual inflation slowed to
18.1% in March from 21.3% a month earlier.
However, the government this week said it would raise
gasoline and diesel price ceilings by 11% and 20% respectively
this month in a move that will affect consumer prices across the
board.
Last month the cabinet said it would increase 2023 budget
spending by 1.5 trillion tenge ($3.19 billion) and withdraw an
additional 800 billion tenge from the rainy-day National Fund.
(Reporting by Mariya Gordeyeva
Writing by Olzhas Auyezov
Editing by David Goodman)
Messaging: olzhas.auyezov.thomsonreuters.com@reuters.net))
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