Pakistan's Central Bank Maintains Key Policy Rate at 22%

Pakistan's central bank has decided to keep its key policy rate steady at 22%, in line with market expectations. This marks the seventh consecutive time in the past 10 months that the rate has remained unchanged at this record high level. The decision comes just ahead of the final approval by the IMF executive board for the release of the last tranche of $1.1 billion on Monday.

The Monetary Policy Committee (MPC) noted that the level of inflation in Pakistan continues to remain high, prompting the central bank to maintain its tight monetary policy stance. The decision to hold the policy rate steady reflects the bank's commitment to tackling inflationary pressures and stabilizing the economy.

Pakistan has been grappling with high inflation rates and economic challenges, exacerbated by the impact of the COVID-19 pandemic. The central bank's decision to keep the policy rate unchanged underscores its focus on managing inflation and supporting economic recovery in the country.

The decision by Pakistan's central bank to maintain its key policy rate at 22% highlights the ongoing efforts to address inflation and stabilize the economy. With inflation remaining high, the central bank's cautious approach aims to support economic recovery and ensure price stability in the country.