Pakistan's central bank keeps main policy rate unchanged at 7%

Pakistan has kept its main policy rate unchanged at 7%, a statement by the country's central bank said on Monday.

The statement said that the monetary policy committee, which met on Monday, "noted that since the last meeting in September, the domestic recovery has gradually gained traction, in line with expectations for growth of slightly above 2 percent in FY21, and business sentiment has improved further." It is the second time that Pakistan has kept its main policy rate unchanged after cutting it 625 basis points, down from 13.25%, at the time the global pandemic hit its economy in February. (Reporting Syed Raza Hassan in Karachi; Editing by Toby Chopra)