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Pakistan central bank hikes main policy rate by 150 bps to 13.75%

The country is going through economic turmoil, including high inflation, reserves declining to as low as less than two months' of imports and a fast-weakening currency

Pakistan
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Khan announced the subsidies in his last weeks in power and they will cost around $2 billion from April to June before Pakistan presents its annual budget.

Reuters Karachi
Pakistan's central bank raised its benchmark interest rate on Monday by 150 basis points to 13.75%, the second hike in less than two months, as the South Asian nation grapples with a sinking economy.

The key interest rates have been hiked by 400 bps in less than two months, according to the central bank.

"This action, together with much needed fiscal consolidation, should help moderate demand to a more sustainable pace while keeping inflation expectations anchored and containing risks to external stability," the State Bank of Pakistan (SBP) said in a statement.

The country is going through economic turmoil, including

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: May 23 2022 | 7:21 PM IST

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