Karachi: The State Bank of Pakistan announced a revised monetary policy aimed at addressing inflationary pressures in the nation. The central bank has decided to raise the benchmark interest rate by 100 basis points, moving it to 16%. This decision reflects the bank’s efforts to counter rising inflation that has impacted the economy.

The State Bank emphasized that the policy adjustment is necessary to stabilize prices and achieve sustainable economic growth. Officials noted that inflation has been driven by both domestic and international factors, including supply chain disruptions and rising commodity prices.

The monetary policy committee highlighted that the increased interest rate is expected to moderate demand and ease inflationary trends. The committee will continue to monitor economic indicators closely, ensuring that future policy decisions align with the evolving economic landscape.

The central bank reaffirmed its commitment to transparency and communication with stakeholders. The State Bank’s leadership stated that they would provide regular updates and engage with economic experts to assess the impact of the policy changes.

Market analysts are watching closely, anticipating how the new policy will influence business investment and consumer spending. The revised rate is a pivotal move in the State Bank’s strategy to maintain economic stability amid ongoing challenges.