Fitch upgrades rating, SBP cuts rate

PAKISTAN:

Fitch Ratings, a global credit rating agency, has upgraded Pakistan's long-term foreign currency issuer default rating (IDR) to 'CCC+', the agency said on Monday, indicating an increase in the country's foreign exchange reserves, while the central bank cut the key interest rate by 100 basis points to 19.5 percent in line with expectations of investors and analysts.

The State Bank of Pakistan reduced the target policy rate by 100 basis points to 19.50%, according to Governor Jameel Ahmad.

The upgrade reflects greater certainty over continued availability of external funding, in the context of Pakistan's staff-level agreement with the International Monetary Fund (IMF) on a new 37-month, $7 billion extended fund facility (EFF).

Pakistan (SBP) has now revised the policy rate downward for the second consecutive time in just seven weeks, reflecting a response to the slowdown in inflation.

Detailed story inside