Monetary policy: SBP hikes interest rate to 16% to curtail inflation

The Financial Coverage Committee (MPC) of the State Financial institution of Pakistan (SBP) jacked up the important thing coverage charge by 100 foundation factors to 16%, it was introduced on Friday.

The central financial institution, in an announcement, issued after the assembly stated that this choice displays the MPC’s view that inflationary pressures have confirmed to be stronger and extra persistent than anticipated.

1/3 At right now’s assembly, the Financial Coverage Committee (MPC) determined to boost the coverage charge by 100 foundation factors to 16%. https://t.co/E4scWh3Eeo

— SBP (@StateBank_Pak) November 25, 2022

“This choice is geared toward making certain that elevated inflation doesn’t change into entrenched and that dangers to monetary stability are contained, thus paving the way in which for larger development on a extra sustainable foundation,” the MPC stated.