Pakistan orders 250bp hike at emergency meeting
High commodity prices, currency depreciation and political turmoil force up prices
The State Bank of Pakistan’s monetary policy committee ordered a 250 basis point increase in the policy rate at an unscheduled April 7 meeting.
The move brings the policy rate to 12.25%. The committee noted high commodity prices and persistently high inflation in making its decision, and said that the Pakistan rupee had depreciated.
The country’s currency has fallen by approximately 5% against the US dollar over the last month. The MPC projected an average inflation rate of “slightly above 11%
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