News in Brief
Pakistan to curb crippling inflation
REUTERS – Pakistan’s central bank raised its key interest rate to a record 21% on Tuesday as the country bid to curb crippling food inflation and maintain the confidence of foreign creditors.
The 100 basis-point (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%.
IMF to prevent turmoil
AFP – The recent banking turmoil in the United States and Europe could spread to crucial non-bank institutions like pension funds, further complicating central banks’ fight against high inflation, the International Monetary Fund said Tuesday.
Banking risks “could intensify in coming months amid the continued tightening of monetary policy globally,” and spread to the interconnected non-bank sector, which now holds almost half of all global financial assets, IMF economists wrote in a blog post.
Insurers renew cover for Nord Stream gas link
REUTERS – German insurers Allianz and Munich Re have renewed cover for the damaged Nord Stream 1 gas pipeline, five sources with knowledge of the matter said, indicating that its revival has not been ruled out after an alleged sabotage attack.
Insurance by two of Germany’s biggest companies is critical for any long-term future of the pipeline, which was the main route for Russian gas to Europe for a decade before the blast last September.