KARACHI: The State Bank of Pakistan (SBP) has announced a new monetary policy, raising the interest rate in the country by one percentage point. Effective immediately, the interest rate will increase from 10.5% to 11.5%.
Economic experts attribute this rise in interest rates to uncertainty in global markets and the escalating prices of petroleum products, which are influenced by ongoing tensions in the Middle East.
These fluctuations in global oil prices, combined with economic instability, are putting additional pressure on Pakistan’s economy, leading to significant policy decisions. Analysts warn that the increase in interest rates is likely to have a direct impact on inflation because rising petroleum prices also affect the cost of essential goods, which may further drive inflation at the consumer level.
According to the State Bank, this decision aims to promote economic stability and control inflation in the country.
