Central Bank hikes rates 100 bp to record high
Rupee falls to record low against dollar
Pakistan posted highest ever inflation in March
Government in talks with IMF on next loan tranche

KARACHI, Pakistan, April 4 Reuters Pakistan39;s central bank raised its key interest rate to a record 21 on Tuesday as the cashstrapped country bid to curb crippling food inflation and maintain the confidence of foreign creditors.

The 100 basispoint bp increase by the State Bank of Pakistan SBP was less than the 200 forecast by a Reuters poll of analysts as the country grapples with record annual consumer inflation of over 35.

Global factors have compounded consumer inflation already buoyed by Pakistan39;s weakening currency, energy tariff increases and hikes in food prices due to Ramadan.

Food, beverage, and transportation prices have all surged more than 45, putting pressure on household budgets and leaving many desperate. At least 16 people were killed in stampedes for food aid last week.

The MPC considers the current monetary policy stance appropriate and stresses that todays decision, along with previous accumulated monetary tightening, will help achieve the mediumterm inflation target over the next eight quarters, the SBP said in a statement.

The SBP has hiked its key rate by a cumulative 1025 bps since January 2022.

The rupee closed at 287.29 against the dollar, its lowest ever level, after depreciating over 1 during the day. The currency has lost more than 20 of its…