KARACHI: Amid high rising, the State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) on Friday decided to raise the policy rate by 100 bases to an all-time-high level of 16%.
In a statement released by the central bank on Friday evening, the extreme decision reflects the growing inflationary pressures in the country amidst a contracting economy.
The Rise in Interest Rate will Ensure Economic Stability: SBP
The central bank explained that inflationary pressures were more persistent and powerful than expected.
SBP stated that the rise in interest rate was aimed to ensure that rising inflation does not become entrenched. SBP stated that the rise in interest rate will contain risks to financial stability and will pave the way for higher growth on a more sustainable basis.”
