SBP Policy Rate Increased by 3%

The State Bank of Pakistan decided through its Monetary Policy Committee to raise the Policy Rate by 300 basis points (i.e. 3%) to 20% from 17%, to ‘deal with inflation’. This level is now a 27 year high, as the last time it was this high was in October 1996.

The Monetary Policy Committee under the Chairmanship of the SBP Governor Jameel Ahmed said that ‘anchoring inflation expectations is critical and warrants a strong policy response’.