ISLAMABAD – November 25 (ONLINE) State Bank of Pakistan (SBP) on Friday announced the interest rate has been increased by 100 basis points (bps) to 16 per cent to curb inflation.
After a meeting of its Monetary Policy Committee (MPC), the SBP announced on Friday that decision was aimed at ensuring that “elevated inflation does not become entrenched and that risks to financial stability are contained, thus paving the way for higher growth on a more sustainable basis”.
“At today’s meeting, the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 16%,” the bank announced via its official Twitter handle.
“This decision is aimed at ensuring that elevated inflation does not become entrenched & that risks to financial stability are contained, thus paving the way for higher growth on a more sustainable basis. Higher food & core inflation are key contributors to elevated inflation,” a subsequent tweet added.
“After incorporating the Post-Disaster Needs Assessment of the floods and latest developments, the FY23 projections for growth of around 2% and a current account deficit of around 3% of GDP shared in the last monetary policy statement are re-affirmed,” it concluded.
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