Pakistan raises rates again as inflation climbs past 20%
IMF urges tighter fiscal policy as governor's post remains unfilled
The State Bank of Pakistan ordered its sixth rate increase since September, raising the policy rate by 125 basis points to 15% on July 7.
The Pakistani authorities have now more than doubled the benchmark rate in the last 10 months, from 7%. The SBP’s monetary policy committee said it aimed to “cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the rupee”.
Pakistan faces a balance-of-payments crisis, spiralling inflation and political turmoil. The
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