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.

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Pakistan Interest Rate



Related Last Previous Unit Reference
Interest Rate 15.00 13.75 percent Jun 2022
Money Supply M1 22141241.00 21447783.00 PKR Million Jun 2022
Money Supply M0 9258360.84 9723367.90 PKR Million Jun 2022
Interbank Rate 14.70 13.53 percent May 2022
Money Supply M2 26768160.00 25633675.00 PKR Million Jun 2022
Money Supply M3 30417400.00 29345795.00 PKR Million Jun 2022
Foreign Exchange Reserves 16406.00 17426.40 USD Million Apr 2022
Loans To Private Sector 6486286.00 6431407.00 PKR Million Feb 2022

Pakistan Interest Rate
In Pakistan, interest rates decisions are taken by the State Bank of Pakistan. On 23rd of May, 2015 the discount ceiling rate was replaced by a new official interest rate, the SBP Policy rate.
Actual Previous Highest Lowest Dates Unit Frequency
15.00 13.75 19.50 5.75 1992 - 2022 percent Daily

News Stream
Pakistan Hikes Interest Rate by 125bps
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.
2022-07-07
Pakistan Hikes Main Rate to 13.75%
The State Bank of Pakistan hiked its key policy interest rate by 150 basis points to 13.75% during its May 23rd meeting, to preserve price and foreign exchange stability amid a sharp devaluation of the rupee. The monetary policy committee reiterated that external pressures remain elevated, and the inflation outlook has deteriorated due to both home-grown and international factors. However, the economy has rebounded much more strongly than anticipated, growing by 5.7 percent last year and accelerating to 5.97 percent this year, as per provisional estimates. Further, it assumes continued engagement with the IMF, as well as reversal of fuel and electricity subsidies together with normalization of the petroleum development levy (PDL) and GST taxes on fuel during FY23. Under these assumptions, headline inflation is likely to increase temporarily and may remain elevated throughout the next fiscal year, however it is expected to fall to the 5-7 percent target range by the end of FY24.
2022-05-23
Pakistan Hikes Rates at Extraordinary Meeting
The State Bank of Pakistan hiked its key policy interest rate by 250 basis points to 12.25% at an unscheduled meeting on April 7th of 2022, in an attempt to preserve price and foreigne exchange stability amid a sharp devaluation of the rupee. The monetary policy committee said it was caught off guard by the US Fed’s tightening plans and inflationary pressures, as well as domestic political uncertainty, which could escalate into an economic crisis. Policymakers added that now, real interest rates were mildly positive and that the central bank held its stance to curb inflationary pressures and the deterioration of the country’s current account. Updated forecasts showed inflation was revised upwards to 11% in the current fiscal year, while the current account deficit forecast was unchanged ay 4% of GDP.
2022-04-07