The State Bank of Pakistan on Thursday announced that it has increased the interest rate by 125 basis points (bps) to 15 per cent.
At a press conference after the Monetary Policy Committee (MPC) meeting to decide on the policy rate, the acting governor of the central bank said the “most important” objective behind the move was to contain rising inflation.
central bank first raised The benchmark interest rate rose 150 bps to 13.75 pc in May.
Pakistan is grappling with economic turmoil, declining reserves and a weak currency. Friday’s data showed consumer prices rose 21.3 per cent in June from a year earlier, mainly due to a 90 per cent increase in fuel prices since late May, when the government scrapped costly fuel subsidies. Had done it.
Most economists and market watchers It is believed that Given persistently high global energy prices, abrupt cessation of fuel subsidies, as well as the need to control demand, SBP in its final policy statement said the economy had returned stronger than anticipated.
With Pakistan hoping to restart the much-awaited bailout package from the International Monetary Fund after agreeing some tough economic policy adjustments to boost stability in the country, the SBP’s decision was being closely monitored.
More to follow.