Pakistan central bank hikes interest rate 125 bps to 15%

Pakistan's main policy rate has been hiked 125 basis points to 15%, the country's acting central bank governor Murtaza Syed said on Thursday.

Syed's announcement at a virtual press conference followed a meeting of the Monetary Policy Committee, days after inflation in Pakistan surged to a 13-year high in June.

The key interest rates have been increased 525 bps since the start of this year.

"This combined action continues the monetary tightening underway since last September, which is aimed at ensuring a soft landing of the economy amid an exceptionally challenging and uncertain global environment," the bank said in a statement that followed the news conference.

The bank said the higher rate should help cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the Rupee in the wake of multi-year high inflation and record imports.