The State Bank of Pakistan (SBP) has set its monetary policy at 12.25 percent, according to a statement released by the central bank on Thursday. Pakistan is dealing with uncertainty over the outlook for international commodity prices and global financial conditions, which has been exacerbated by the Russia-Ukraine conflict.
This step, according to the central banks, will help to maintain external and price stability.
The Monetary Policy Committee (MPC) stated at its most recent meeting on March 8 that it “was prepared to meet earlier than the next planned MPC meeting on April 19, if necessary, to take any necessary promptly and calibrated action to ensure external and price stability.”
The meeting was scheduled 12 days ahead of time, as per the company’s forward guidance. The Monetary Policy Committee of the State Bank of Pakistan was to convene on April 19, 2022, to deliberate on the interest rate.
The recent increase comes after the rupee hit an all-time low of Rs188.18 in the interbank market against the US dollar.
According to a statement released by the central bank, inflation surprised on the upside in March, with core inflation jumping strongly in both urban and rural areas.