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The State Bank of Pakistan (SBP) on Monday raised its key policy rate to 11.5 per cent.
In its meeting today, the Monetary Policy Committee (MPC) “decided to raise the policy rate by 100 basis points to 11.50pc” with effect from Tuesday, the SBP said in a statement.
The hike is the first in almost three years, as rising oil prices from the US-Israel war on Iran threaten to push inflation higher in the import-dependent nation.
In its detailed statement, the MPC noted that the “prolonging of the Middle East conflict has intensified risks to the macroeconomic outlook”.
