The State Bank of Pakistan raised its key policy rate by 150 bps to 8.75% on November 19th of 2021, the second hike since a 625bps cut in 2020, arguing there was a need to proceed faster with the normalization of monetary policy to counter inflationary pressures and maintain price stability. The central bank noted that inflation had reached 9.2% in October, compared to 8.4% at the time of the last meeting, mainly driven by prices of food & non-alcoholic beverages and housing & utilities. Policymakers said high import prices were contributing to higher-than-expected inflation rates but also pointed that demand-side pressures and inflation expectations of businesses were emerging. Additionally, the September and October balance of payment deficits were larger than anticipated, which has significantly weakened the rupee. Looking ahead, the Committee reiterated that the goal of mildly positive real interest rates remained unchanged and expects to take measured steps to that end. source: State Bank of Pakistan
Interest Rate in Pakistan averaged 11 percent from 1992 until 2021, reaching an all time high of 19.50 percent in October of 1996 and a record low of 5.75 percent in May of 2016. This page provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Pakistan Interest Rate - values, historical data and charts - was last updated on December of 2021.
Interest Rate in Pakistan is expected to be 9.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Pakistan Interest Rate is projected to trend around 11.50 percent in 2022 and 13.00 percent in 2023, according to our econometric models.