LONDON – Pakistan faces yet another economic blow after State Bank ofPakistan increased interest rates.
Pakistan’s dollar-denominated sovereign debt came under pressure on Fridayafter the central bank slashed its growth forecast and warned of mountingheadwinds while hiking interest rates to 10%.
The country’s 2036 issue fell 1.23 cents to 88.436 cents, its lowest levelsince September, according to Tradeweb data.
Read Top Stories
The central bank has now raised rates by more than 4 percentage pointssince January in a bid to ease widening current account pressures thatthreaten to trigger a balance of payments crisis. Earlier on Friday, therupee plunged more than 6% in what dealers said was another currencydevaluation by the central bank.
