Pakistan central bank surprises with hold on key policy rateThe central bank has slashed rates by 1000 bps from an all-time high of 22 per cent in June 2024, in one of the most aggressive moves among central banks of emerging markets. 
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Pakistan Finance Minister Muhammad Aurangzeb
Credit: Reuters File Photo
Pakistan's central bank held its key policy rate at 12 per cent on Monday, it said in a statement, a widely unexpected move which halted an easing cycle that witnessed six straight reductions since June.
Ten of 14 analysts surveyed by Reuters expected the central bank to cut its key rate, while four expected it to hold the rate.
The central bank has slashed rates by 1000 bps from an all-time high of 22 per cent in June 2024, in one of the most aggressive moves among central banks of emerging markets and topping the 625 bps in rate cuts it did in 2020 during the COVID-19 pandemic.