SBP reverses course and hikes rates 100bp
State Bank of Pakistan raises key rate in emergency session as IMF deadline looms
The State Bank of Pakistan raised its key rate by 100 basis points to 22% at an extraordinary policy meeting on June 26.
The decision comes as Pakistan struggles to secure the final tranche of an International Monetary Fund (IMF) loan. It is the country’s eleventh rate hike in the past two years, totalling 1,500bp.
Only two weeks before, the bank’s monetary policy committee (MPC) had held rates at a scheduled session, despite May’s headline inflation figure of 38%.
In its statement, the MPC
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