Pakistani stocks fall 3% after rate hike, growth forecast lowered

File photo. Photograph:( Reuters )

Reuters Islamabad, Pakistan Dec 03, 2018, 12.38 PM (IST)

Pakistan's stock market fell 3 per cent on Monday after the central bank hiked its policy interest rate by 150 basis points to 10 per cent on Friday and sharply cut its economic growth forecast. 

The benchmark 100-share index of the Pakistan Stock Exchange was down 1,217.05 points by 11.02 am (0602 GMT), trading at 39,278.98 points. 

On Friday, the central bank said economic growth will ease to "slightly above 4 per cent" in the year to end of June 2019, a reduction from the previous forecast, made in September, of 5 per cent. The economy grew 5.8 per cent, the highest rate in more than a decade in the last fiscal year, which ended on June 30.