Pakistan Holds Rates at 10.5% as Oil Surge Clouds Outlook

Pakistan’s central bank held its key policy rate after oil prices surged as the Strait of Hormuz remained largely closed and the US threatened to deepen a conflict that has upended energy markets.

The decision was taken to keep the rate at 10.5%, State Bank of Pakistan said in a statement from Karachi on Monday. Majority 35 of 38 analysts predicted that the central bank will keep interest rates unchanged, according to a Bloomberg survey.