The State Bank of Pakistan raised its key policy rate by 125bps to 15% on July 7th meeting, to fight the surging inflation amid sharp depreciation of the rupee. It was the sixth rate-hike since the monetary board started policy normalization process in September last year, pushing the borrowing costs the highest since April of 1999. Domestically, as energy subsidies were reversed, both headline and core inflation increased to a 14-year high. Further, the central bank reiterated that headline inflation is likely to remain elevated around current levels for much of FY23 before falling sharply to the 5-7% target range by the end of FY24, driven by tight policies, normalization of global commodity prices, and beneficial base effects. Also, the Monetary policy committee noted that higher rate should help cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the rupee in the wake of multi-year high inflation and record imports. source: State Bank of Pakistan
Interest Rate in Pakistan averaged 11.01 percent from 1992 until 2022, 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 - data, historical chart, forecasts and calendar of releases - was last updated on August of 2022.
Interest Rate in Pakistan is expected to be 14.75 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 14.00 percent in 2023 and 12.50 percent in 2024, according to our econometric models.