KARACHI: Pakistan’s central bank kept its key interest rate unchanged at 22 percent, announcing the outcome of a policy review in a statement on Thursday that surprised analysts who were expecting an increase of at least 150 basis points.
Battling rising inflation and dwindling foreign exchange reserves, the crisis-ridden South Asian nation is trying to navigate a path to economic recovery under a caretaker government in the wake of a critical $3 billion IMF loan program, approved in July.
Reforms under the program have complicated the task of keeping price pressures in check and protecting an already weak rupee from further declines, with the country passing through a political and economic crisis.
The State Bank of Pakistan’s monetary policy committee kept the key interest rate unchanged when it last met in July, having earlier raised it by 12.25 percentage points to 22 percent since April 2022.
