State Bank of Pakistan Raises Interest Rate by 100 Basis Points to 11.5%
KARACHI — The State Bank of Pakistan (SBP) has increased its benchmark interest rate by 100 basis points, raising it from 10.5% to 11.5%, following a meeting of the Monetary Policy Committee (MPC).The central bank cited rising inflationary pressures and evolving macroeconomic conditions as key factors behind the decision to tighten monetary policy. The move…
KARACHI — The State Bank of Pakistan (SBP) has increased its benchmark interest rate by 100 basis points, raising it from 10.5% to 11.5%, following a meeting of the Monetary Policy Committee (MPC).
The central bank cited rising inflationary pressures and evolving macroeconomic conditions as key factors behind the decision to tighten monetary policy. The move marks a reversal from the MPC’s previous stance, as the bank had held the policy rate steady at 10.5% during its last meeting on March 9.
The rate hike signals a more aggressive approach by the SBP to curb inflation and stabilize the Pakistani rupee amid ongoing economic challenges. Economists note that the increase will raise borrowing costs for businesses and consumers, potentially slowing credit growth while aiming to bring price stability.
Financial markets are expected to react to the decision, with analysts closely watching its impact on investment sentiment, the exchange rate, and the broader economy in the coming weeks.
