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Pakistan hikes interest rates to 5-year high after IMF deal

Inflation-fighting move takes borrowing rate to more than 12%

Shopping for groceries at a store in Peshawar. Pakistan's rupee has become Asia's weakest currency in recent months.   © Reuters

ISLAMABAD -- Pakistan's central bank on Monday raised its key interest rate by 150 basis points to 12.25%, the highest level in five years, as it moves to contain inflation.

Analysts said the interest rate hike also was meant to support the Pakistan rupee, which has become Asia's weakest currency in recent months. The rupee has depreciated by over 5.9% against the dollar since March, and more than 33% since late 2017.

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