Pakistan’s central bank holds key interest rate at 13.25pc

Pakistan’s central bank held its main policy rate at 13.25 per cent yesterday, taking a second consecutive pause from a series of previous hikes as data pointed to a stabilising inflation rate.

The bank last lifted rates in July by 100 basis points, raising the interest rate to 13.25pc, its ninth cut since the start of 2018, as it faced rising inflation, a substantial current account deficit and downward pressure on the rupee currency.

The decision comes at a time of scrutiny for Pakistan’s economy by the International Monetary Fund, which is reviewing progress on reforms agreed as part of bailout package in July.