Pakistan Raises Key Interest Rate
Pakistan Raises Key Interest Rate

Pakistan Raises Key Interest Rate

Pakistan Raises Key Interest Rate

Pakistan’s central bank on Saturday raised interest rates by 100 basis points to 7.5%, adding to a hike in May in order to offset inflationary pressures after a currency depreciation, Nikkei reported. The Pakistani rupee slumped 3.8% against the dollar last month before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid fears of a balance of payments crisis. The central bank governor, Tariq Bajwa, said strong fiscal expansion in the second half of 2018 was likely to offset monetary tightening in the recent months. He also said higher international oil prices had inflated the import bill, rising inflation projections. Pakistan’s annual inflation rate in June spiked to 5.21% from 4.19% in May, the biggest increase in almost four years. Pakistan’s rapidly-depleting foreign currency reserves, which tumbled to $10.3 billion in May from $16.4 billion a year earlier have dampened the economic outlook even though the economy grew nearly 6%, the fastest pace in 13 years. Many financial analysts predict Islamabad will need an International Monetary Fund bailout after the election in July. It would be its second bailout since 2013.


Short URL : https://goo.gl/5F21KQ
  1. https://goo.gl/QKprQY
  • https://goo.gl/XgP3mk
  • https://goo.gl/f2Te1K
  • https://goo.gl/tz6WQv
  • https://goo.gl/QEuQqT

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
Surging Inflation Mars Philippines Growth
The Philippine economy in 2018 is a story that can be summed...
Transport tickets and fuel have driven up costs for consumers.
Inflation in the UK climbed in the month of the July, as had...

Add new comment

Read our comment policy before posting your viewpoints