The State Bank of Pakistan decided to keep the interest rates for banks at 22 percent. This choice came after a meeting of the Monetary Policy Committee that also agreed on keeping the rate at 22 percent.
The committee stressed that it’s essential to continue with this strict monetary policy to bring down inflation to a range of 5 to 7 percent by the end of the fiscal year 2025.
They also highlighted that reaching this inflation target depends on sticking to a solid financial plan and receiving the planned external funds on time. This decision was made just before the International Monetary Fund was about to review and possibly release the second installment of $710 million.
Since October 2021, the State Bank has increased the policy rate by a total of 1,500 basis points to control rising inflation and support the country’s financial situation. This rate hasn’t changed since July 2023. In the previous meeting in July, the State Bank of Pakistan decided to keep the interest rate at 22 percent as well.
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