Karachi (Web Desk): The State Bank on Pakistan (SBP) on Thursday increased benchmark interest rate by 250 basis points, taking it to 12.25 per cent.
The SBP’s Monetary Policy Committee (MPC) said in a statement that in its last meeting on March 8, it had noted the “significant uncertainty around the outlook for international commodity prices and global financial conditions” which were further exacerbated by the Russia-Ukraine conflict.
The inflation out-turn in March surprised on the upside, with core inflation in both urban and rural areas also rising significantly, read the statement.
The committee was scheduled to meet on April 19, 2022 to decide the interest rate.
The recent hike comes after the rupee plunged to an all-time low of Rs188.18 against the US dollar in the inter-bank market.