Pakistan’s central bank on Monday raised its key interest rate by 100 basis points to 17% in a bid to rein in persistently high inflation, and it said achieving price stability was key to attaining sustainable economic growth in the future.
The increase, which matched the majority forecast of the economists and market watchers surveyed by Reuters, takes Pakistan’s benchmark rate to its highest level since October 1997.
Policymakers are facing tough times in the $350 billion economy, with high inflation and a sharp fall in reserves, which at $4.6 billion, barely enough to cover three weeks’ worth of imports.
