IMF Welcomes Central Bank’s Policy Rate Action

The International Monetary Fund (IMF) has welcomed the move by State Bank of Pakistan (SBP) to raise its policy rate by 250 basis points.

In a statement issued to the media the IMF spokesperson said, “We welcome the State Bank of Pakistan Monetary Policy Committee’s strong policy rate action, given the elevated inflation and heightened uncertainty that Pakistan is facing.”

The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Thursday raised the policy rate by 250 basis points to 12.25 percent from 9.75 percent. This raise is the highest one-shot increase since the 300 bps in October-1996.

It is worth mentioning that SBP’s MPC was scheduled to meet on April 19 but amid inflationary pressures and pressure on the external front especially on the reserves side, the emergency meeting was convened.