Pakistan Holds Rate At 11.5% As Inflation Returns To Double Digits
August inflation jumped to 11.15% from July's 9.2%, driven largely by Middle East oil costs feeding through to imports.
- The rate has stood at 11.5% since April's full percentage-point hike, its first rise in nearly three years.
- SBP reserves totaled $23.7 billion on September 4: $18.3 billion at the bank, $5.4 billion at commercial banks.
- The bank's own target is 5% to 7%, August's reading sat over four points above it.
Why it matters: The bank cannot lower oil prices set by a Middle East war, so it left the rate alone.
State Bank of Pakistan, Monetary Policy Statement/Press Release ↗ · Sep 14, 20269/14/26