Pakistan c.bank holds key rate at 22% for fourth straight meeting

Pakistan’s central bank kept its key rate unchanged at a record 22% on Tuesday as it waits for the effects of previous hikes to filter through the economy and further tame retail inflation. All but one analyst polled by Reuters had expected the State Bank of Pakistan to hold the rate steady for a fourth straight monetary policy meeting.

The bank’s monetary policy committee said that an increase in gas prices last month could affect the inflation outlook. “The decision does take into account the impact of the recent hike in gas prices … the Committee viewed that this may have implications for the inflation outlook, albeit in the presence of some offsetting developments,” the State Bank of Pakistan (SBP) said in the statement.

Source: Devdiscourse