Pakistan raises interest rate to highest in 3 years


Pakistan raised its key rate to the highest in three years, making it Asia’s most aggressive interest-rate hiker this year as the country’s finances continue to dwindle.
The target policy rate was raised for the third straight meeting to 8.5 percent from 7.5 percent, the State Bank of Pakistan said in a statement on Saturday. The move was predicted by eight out of 27 economists. One expected the rate would be unchanged, while the others forecast a less aggressive hike. Policy makers have already raised rates by 1.75 percentage points since November, taking the discount rate to the highest in more than three years.

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