Pakistan: end of the tightening cycle

Pakistan’s central bank (SBP) today raised its policy rate by a further 100bps (to 21.0%), but the tone of the statement was less hawkish than after previous meetings. While interest rates will need to remain elevated for the foreseeable future, we think today’s hike marks the end of the tightening cycle.

EM Drop-In (6th Apr.): Our latest EM online briefing is all about the risks around the recent bank turmoil, including potential economic spill-overs and the state of EM bank balance sheets. Register now.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.