Central bank raises policy rate by 50 basis points to 12pc

The State Bank of Pakistan lifted its policy rate by 50 basis points to 12 per cent on Monday, ending a period in which it had remained at 11.5 per cent. Governor Jameel Ahmed said the Monetary Policy Committee weighed the inflation outlook, global oil and commodity costs, domestic conditions and external-account pressures.

Nine of the committee’s ten members supported the increase, while one member favoured a larger rise. The SBP also raised its remittance forecast from $44 billion to $45 billion, and Ahmed said export activity was improving but had not reached the level the economy requires. Dawn reported that Topline Securities viewed the rate move as consistent with its expectations.