SBP raises rate 100bp amid balance of payments ‘stress’
Inflation continues climb while reserves remain at critically low levels
The State Bank of Pakistan raised its policy rate by 100 basis points on April 4, taking it to a new high of 21% as the country continues to battle severe balance-of-payments problems.
The central bank said the current account deficit had narrowed “considerably”, but acknowledged the overall balance-of-payments position “continues to remain under stress”. The rupee has fallen 4.3% against the dollar in the past month, and is down more than 36% on a year ago. The SBP’s reserves dwindled to just
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