Here is a look at SBP's previous monetary policy announcements

  • Central bank has raised interest rates by 675 basis points since September 2021, taking the key rate to its highest since 2011
Updated 07 Jul, 2022

As the State Bank of Pakistan (SBP) gears up to announce the monetary policy with Acting Governor Dr Murtaza Syed set to address a press conference today, Business Recorder takes a look at the previous meetings.

Since April this year, the SBP has increased the interest rates by 400 basis points. The key rate currently stands at 13.75%, which is the highest since early 2011.

However, with the consumer price index (CPI)-based inflation reading hitting 21.32% on a year-on-year basis in June 2022, most analysts now expect the SBP to announce another hike in the interest rate.

Here is an informal poll conducted by Business Recorder:

Here are announcements from the 7 previous MPC meetings

The SBP has raised rates in 5 of the previous 7 meetings since September 2021, cumulatively increasing the interest rates by 675 basis points.

September 2021: First hike in over 2 years: SBP raises key interest rate by 25 basis points

November 2021: Monetary policy: SBP raises key interest rate by 150 basis points, takes it to 8.75%

December 2021: 3rd successive hike: SBP increases key interest rate by 100 basis points, takes it to 9.75%

January 2022: Monetary policy: SBP keeps policy rate unchanged at 9.75%

March 2022: SBP keeps interest rate unchanged at 9.75%

Emergency meeting in April 2022: At emergency MPC meeting, SBP raises policy rate by 250 basis points to 12.25%

May 2022: SBP raises key interest rate by 150 basis points, takes it to 13.75%


Also read:

Read Comments

Enough belt-‘tightening’

The monetary policy decision is day after tomorrow. Seeing the higher-than-expected inflation in June (at 21.3%)...