State Bank of Pakistan increases policy rate by 1%

Karachi: The State Bank of Pakistan has increased its policy rate by 1%. With this increase the interest rate has jumped from 8.75% to 9.75%.

According to the central bank’ monetary policy on Tuesday, the SBP increased the benchmark interest rate by 100 basis points to 9.75% for the next one month.

The market was already expecting the hike keeping in view the ever-rising import bill and trade and current account deficits.

It is noteworthy here that the inflation reading for November soared to 11.5% which was much higher than the central bank’s projection of 7-9% inflation for the year.

The next monetary policy will be announced on January 24, 2022.