Pakistan raises rates 100bp amid reserves crisis
Reserves now only enough to cover about three weeks of imports
Amid critically low reserve levels, the State Bank of Pakistan raised policy rates on January 23 by 100 basis points to 17%.
The SBP monetary policy committee cited “persisting” and “broad-based” inflation, rising core inflation and increasing inflation expectations. Headline inflation was 24.5% year on year in December, up from 23.8% in November. However, both figures fell below the 26.6% rate recorded in October. The central bank targets 5–7% inflation by December 2024.
The decision is the
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