SBP raises interest rate by 1 pc

KARACHI: The central bank on Saturday raised interest rate by 100 basis points to 8.5 per cent – a move that was widely expected – to stabilise the economy imperiled by large twin deficits and rising inflation.

“… further consolidation efforts are required to ensure macroeconomic stability and therefore (the monetary policy committee) has decided to raise the SBP target policy rate by 100 bps to 8.5 per cent effective from 1 October 2018,” the State Bank of Pakistan (SBP) said in a monetary policy statement for the next two months.