Prepared to take action to curb excessive market volatility – Pak’s Central bank

Islamabad: After a sharp fall in the rupee over recent days, Pakistan’s central bank said on Monday it was watching foreign exchange markets closely and was prepared to take action to curb excessive volatility. In a statement following its decision to increase its key policy rate to 12.25%, the State Bank of Pakistan (SBP) said the recent movement in the rupee “reflects the continuing resolution of accumulated imbalances of the past and some role of supply and demand factors”. “SBP will continue to closely monitor the situation and stands ready to take measures, as needed, to address any unwarranted volatility in the foreign exchange market,” it said.