Pakistan confronts inflation with 100bp hike

The State Bank of Pakistan
Photo: SBP/Abbas Ali Khan

The State Bank of Pakistan raised the country’s policy rate by 100 basis points to 9.75% on December 14. The SBP monetary policy committee cited high inflation and a balance-of-payments deficit in its decision to increase the rate.

However, it also indicated that it may pause the recent cycle of policy tightening.

The MPC raised rates at its last two meetings, starting with a 25bp hike in September and followed by a 150bp increase in November.

In its monetary policy statement, the committee

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account