Connect with us

Hi, what are you looking for?

Business

SBP raises interest rate by 250 bps to 12.25pc

sbp raises interest rate by 250 bps to 12.25pc

The State Bank of Pakistan (SBP) on Thursday raised its benchmark interest rate by a 250 basis points to 12.25% as the country grapples with uncertainty around the outlook for international commodity prices and global financial conditions.

In line with its forward guidance, the meeting took place 12 days in advance. The State Bank of Pakistan Monetary Policy Committee was scheduled to meet on April 19, 2022 to decide the interest rate.

The recent hike comes after the rupee plunged to an all-time low of Rs188.18 against the US dollar in the inter-bank market.

According to a statement issued by the central bank; the inflation out-turn in March surprised on the upside, with core inflation in both urban and rural areas also rising significantly.

The MPC noted that the above developments necessitated a strong and proactive policy response. Accordingly, the MPC decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements.

These items are mostly finished goods including luxury items and exclude raw materials. The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates today.

FBR Releases New Directorate General of Revenue Analysis

rizwanrkiff@gmail.com'
Written By

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Education

We are going to share Wafaq ul Madaris Annual Exams Result 2022, which will be available here on our site. The Waqaf ul Madaris...

Blog

ehsaas tracking pass gov pk has launched a Tracking Feature at Ehsaas 8171 Web Portal, an online portal for Ehsaas Beneficiaries to check eligibility status and CNIC number...

Gaming

In this article I will share to Buy PUBG UC in Pakistan through MidasBuy Easypaisa & JazzCash account. Please follow the instructions and get...

Guides

IESCO stands for Islamabad Electric Supply Company.IESCO is a subsidiary company of WAPDA. It had been created on April 25, 1998, when WAPDA’s electricity...