The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) jacked up the key policy rate by 100 basis points to 16%, it was announced on Friday.
The central bank, in a statement, issued after the meeting said that this decision reflects the MPC’s view that inflationary pressures have proven to be stronger and more persistent than expected.
1/3 At today’s meeting, the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 16%. https://t.co/E4scWh3Eeo
— SBP (@StateBank_Pak) November 25, 2022
“This decision is 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,” the MPC said.