Pakistan's central bank keeps interest rate on hold at 22%
investing.comKARACHI (Reuters) — Pakistan's central bank on Monday held its key interest rate at 22% for the sixth straight policy meeting as inflation risks continued to loom.
The decision was in line with the expectations of a majority of analysts, although most are also expecting rate cuts from the second quarter of this year.
The bank said that although the inflation rate had eased in February, it remained high and subject to risks.
«This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5–7 percent by September 2025,» the State Bank of Pakistan's (SBP) monetary policy committee said in a statement.
Monday's policy decision is the last ahead of the April expiry of a $3 billion Stand by Arrangement with the International Monetary Fund.
Pakistan's key rate was last raised in June to fight persistent inflationary pressures and to meet one of the conditions set by the IMF for securing the critical bailout.
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