Sovereign Analysis /
PakistanPakistan: SBP on pause as IMF optimism and lower trade deficit boost rupee
The SBP held its policy rate at 15% yesterday, in line with expectations, despite inflation rising to c25% yoy in July
Inflation is largely supply driven and domestic demand is starting to ease, reducing pressure on external accounts
IMF programme approval on the 29th could boost bonds, but reform outlook undermined by political uncertainty; retain Buy
