In a statement issued by the SBP, the MPC has decided to increase the policy rate by 150 basis points to 8.75%.
The decision reflects the view that risks to inflation and balance of payments have increased since the last meeting, while the growth outlook has improved.
The SBP as the risks are shifting from growth to inflation and the current account is moving faster than expected, it is now time to step up measures to normalize monetary policy to counter inflation and maintain stability with growth. Required.
Today’s rate hike is an important step in this direction. The MPC further reiterated that the ultimate goal of achieving a slightly positive real interest rate has not changed and in view of today’s move, it is expected that cautious measures will be taken. will go.