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Pakistan central bank raises key interest rate to 13.25%

File photo. Photograph:( Zee News Network )

Reuters Islamabad Jul 16, 2019, 05.51 PM (IST)

Pakistan's central bank raised its main policy rate by 100 basis points on Tuesday to 13.25%, citing increased inflationary pressures and a likely near-term rise in prices from higher utility costs.

The move follows this month's accord with the International Monetary Fund over a $6 billion loan package that comes with tough conditions aimed at cutting Pakistan's substantial fiscal and current account deficits and bolstering its shrinking currency reserves.