Pakistan’s central bank raised its benchmark interest rate by 125bps to 15%. The country’s central bank said “ the interest rate hike aims to moderate domestic demand, prevent compounding inflationary pressures, and reduce risks to external stability”. The move comes as authorities inch closer to a staff-level agreement with the IMF for a loan package. The country’s annual inflation rate surged to a 14-year high of 21.32% in June from 13.8% in May. The central bank raised its benchmark interest rate by 525bps since the beginning of the year.