SBP jacks up policy rate by 100bps to 22pc
Business
SBP jacks up policy rate to record 22pc
KARACHI (Dunya News) - The State Bank of Pakistan (SBP) on Monday raised the monetary policy rate by another 100 basis points (bps) to record 22 percent in the history of the country.
The decision was taken in a meeting of monetary policy committee of SBP. The meeting decided to increase the policy rate by another 1pc.
1/3 MPC of #SBP convened an emergency meeting today, where it noted that potential upside risks to the inflation outlook have increased from the last meeting, and accordingly decided to raise the policy rate by 100bps to 22%.https://t.co/unuS6xmJHz#SBPMonetaryPolicy pic.twitter.com/FWenKLqdkt
— SBP (@StateBank_Pak) June 26, 2023
The SBP said the inflation rate moved upwards, so the policy rate had to be raised by 1pc.
The monetary policy committee said the escalation in the inflation rate was largely due to the reforms’ measure for external sector that was required for the completion of the International Monetary Funds (IMF) programme.
