Central Banks
Pakistan Raises Key Rate to 24-Year High as Crises Mount
- Challenges for external sector have risen, central bank says
- Governor says nation expects progress in IMF talks soon
This article is for subscribers only.
Pakistan increased its benchmark interest rate to 17%, the highest in more than 24 years, as the economy grapples with raging inflation, supply shortages, dwindling currency reserves and stalled foreign financing.
State Bank of Pakistan’s monetary policy committee raised the target rate by 100 basis points from 16%, a move expected by 25 of 43 economists in a Bloomberg survey. The majority of the economists had forecast a hike ranging from 75-200 basis points, while four predicted a hold.