SBP increases monetary policy rate by 100bps to 22pc

KARACHI, June 26 (SABAH): The State Bank of Pakistan (SBP) on Monday raised the monetary policy rate by another 100 basis points (bps) to record 22 percent in the history of the country.

The decision was taken in a meeting of monetary policy committee of SBP. The meeting decided to increase the policy rate by another 1pc.

The SBP said the inflation rate moved upwards, so the policy rate had to be raised by 1pc.

The monetary policy committee said the escalation in the inflation rate was largely due to the reforms’ measure for external sector that was required for the completion of the International Monetary Funds (IMF) programme.