KARACHI: The State Bank of Pakistan (SBP) has decided to stabilise the inflation and economic situation of the country by raising the monetary policy rate to 15 per cent.
The increase is applied for six weeks after raising 125 base points. Acting-Governor of SBP Murtaza Syed made the announcement.
Murtaza defended the decision by saying that conditions could have been worst if the rate wasn’t hiked.
He said that the current wave of inflation has broken the record of 50 years. Murtaza was optimistic that the inflation rate would stay in the range of 18 to 20pc.
Earlier on May 23, the monetary policy rate was jacked up to 13.75pc after a raise of 150 base points.