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Pakistan hikes policy rate to 12.25% in emergency meeting

Rise of 250 basis points is largest increase in several years

 A brass plaque of the State Bank of Pakistan is seen outside of its wall in Karachi, Pakistan.   © Reuters

ISLAMABAD (Reuters) -- Pakistan's central bank raised its policy rate by 250 basis points to 12.25% in an emergency meeting on Thursday, the bank said in a statement, the biggest hike in years.

The State Bank of Pakistan (SBP) cited a deterioration in the outlook for inflation and an increase in risks to external stability, heightened by the Russia-Ukraine conflict, as well as domestic political uncertainty.

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