Pakistan holds rates, citing uncertainty from Iran war
Central bank expects inflation to remain above its 5–7% target
The State Bank of Pakistan (SBP) has kept its benchmark interest rate at 10.5%, citing a more “uncertain” macroeconomic outlook following the outbreak of war in the Middle East.
The bank’s monetary policy committee said on March 9 that the military action by US and Israeli forces against Iran, and the Islamic republic’s response, had led to a “sharp increase in global fuel prices as well as freight and insurance costs”.
The decision came amid a fuel crunch in the country following supply
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