Pakistan central bank raises interest rate to 10.75%

ISLAMABAD: Pakistan's central bank raised its key interest rate by 50 basis points to 10.75 percent on Friday, citing continuing inflationary pressures and a high fiscal and current account deficit.

The State Bank of Pakistan said pressure on foreign exchange reserves had eased since the last meeting of the monetary policy committee in January, with improved stability on financial markets and better business confidence.

"Nonetheless, despite narrowing, the current account deficit remains high, fiscal consolidation is slower than anticipated, and core inflation continues to rise," it said in a statement announcing the move.