Pakistan central bank lifts interest rates to 7.25%

The bank also signalled that it could raise rates further in coming months

  
A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan December 3, 2018. Image used for illustrative purpose.

A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan December 3, 2018. Image used for illustrative purpose.

REUTERS/Fayaz Aziz
KARACHI, Sept 20 (Reuters) - Pakistan's central bank raised its benchmark interest rate by 25 basis points to 7.25% on Monday, the first move after six consecutive decisions to keep rates on hold since last year.

"Since its last meeting in July, the MPC (Monetary Policy Committee) noted that the pace of the economic recovery has exceeded expectations," the State Bank of Pakistan said in a statement accompanying the decision, noting the country's COVID situation was improving and domestic demand strengthening.

(Reporting by Syed Raza Hassan and Charlotte Greenfield; Editing by Catherine Evans) ((charlotte.greenfield@thomsonreuters.com; +92 300 856 6702; Reuters Messaging: charlotte.greenfield.thomsonreuters.com@reuters.net))


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