SBP Announces To Raise Interest Rate By 150 Bps To 8.75pc
By Muhammad JuniadPublished On 05 Jan 2023
KARACHI: State Bank of Pakistan (SBP) Friday announced to raise the interest rate by 150 basis points to 8.75 percent for the next two months while keeping in view the risks related to inflation and the balance of payments.
Sharing the details of the monetary policy committee (MPC) from its Twitter handle, the SBP said that the rise in interest rate reflects their view that since the last meeting, risks related to inflation and the balance of payments have increased while the outlook for growth has continued to improve.
1/3 The MPC decided to raise the policy rate by 150 basis points to 8.75%. This reflected their view that since the last meeting, risks related to inflation and the balance of payments have increased while the outlook for growth has continued to improve. https://t.co/qsvs9Z9mh3
— SBP (@StateBank_Pak) November 19, 2021
It further said that with risks rotating from growth to inflation and the current account faster than expected, there is now a need to proceed faster to normalize monetary policy to counter inflation and preserve stability with growth.
2/3 With risks rotating from growth to inflation and the current account faster than expected, there is now a need to proceed faster to normalize monetary policy to counter inflation and preserve stability with growth. Today’s rate increase is a material move in this direction.
— SBP (@StateBank_Pak) November 19, 2021
3/3 Looking ahead, the MPC re-iterated that the end goal of mildly positive real interest rates remains unchanged, and given today’s move, expects to take measured steps to that end.
— SBP (@StateBank_Pak) November 19, 2021
