State Bank hikes 25 basis points in new Monetary Policy

ISLAMABAD: Governor State Bank of Pakistan on Thursday announced 25 basis points hike in the interest rate in a press conference here on the new monetary policy for the upcoming two months.

Governor central bank Tariq Bajwa’s announcement of 25 basis points hike has pushed the interest rate to 10.25 percent.

Earlier, the Monetary Policy Committee (MPC) of the central bank in its meeting in Islamabad decided the Monetary Policy.

The central bank had hiked the monetary policy rate by 150 basis points in November last year pushing the interest rate to 10 percent.

The State Bank has hiked the interest rate by overall 450 basis points with its fresh increase in interest rate since January in previous year.

Earlier, some economic analysts predicted further 50 to 100 basis points hike in interest rate by the central bank at its bi-monthly interest rate policy review meeting.

Other experts, however, had advised against the hike in interest rate insisting to leave the rate unchanged.

Pakistan’s central bank announces its policy on the interest rate after every two months in view of the ground realities of the national economy.

The bank’s policy rate, entails managing liquidity in the money market with the objective to keep the short-term interest rates stable and aligned with its policy.