The Sbp on Thursday lifted up the key policy rate by 300 bps to 20% as the nation fights the increased inflation in almost 50 years. Retail inflation in country hopped 31.5% in February YoY, the elevated annual rate in almost 50 years, as nutrition, liquid and vehicle prices streamed more than 45%.
Investors had anticipated the state bank of Pakistan to put forward its key policy rate by 200 rationale points in this off-cycle conference. The key rate of the State Bank of Pakistan now is placed at 20%, its elevated level since October 1996.
In its previous procedure conference in January the bank put forward the rate by 100 bps to 17%. It has now boosted rates by an aggregate of 1,025 bps since January 2022.