SBP raises key interest rate to 25-year high of 17%
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State Bank of Pakistan Governor Jameel Ahmad addresses a press conference in Karachi on January 23, 2023. — AFP KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) Monday raised the key interest rate by 100 basis points (bps), taking it to 17% — the highest since October 1997. In his maiden monetary policy press conference after assuming charge in August, SBP Governor Jameel Ahmad revealed that the committee has observed that “inflationary pressures are persisting and continue to be broad-based”. “If these remain unchecked, they could feed into higher inflation expectations over a longer than-anticipated period therefore the MPC stressed that it is critical to anchor inflation expectations and achieve the objective of price stability to support sustainable growth in the future,” he further explained. The central bank raised the benchmark interest rate by 100 basis points (bps) today taking the total increase to 750bps since January 2022 ...
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