The State Bank of Pakistan held its main policy rate at 15% on August 22nd, following a 125 bps rate hike in the previous meeting. Since last the policy rate has been raised by a cumulative 800 bps to cool the overheating economy and contain the current account deficit. The annual inflation rate in Pakistan soared to near 25% in July, the highest since 2008. The decision comes ahead of a meeting by the International Monetary Fund in Washington next week, at which the bank said it was expected to approve $1.2 billion tranche of lending. Looking ahead, the MPC intends to remain data-dependent, paying close attention to month-on-month inflation, inflation expectations, developments on the fiscal and external fronts, as well as global commodity prices and interest rate decisions by major central banks. source: State Bank of Pakistan

Interest Rate in Pakistan averaged 11.02 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 September of 2022.

Interest Rate in Pakistan is expected to be 15.00 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 15.00 percent Aug 2022
Interbank Rate 15.81 15.68 percent Aug 2022
Money Supply M0 9635148.85 9675516.61 PKR Million Aug 2022
Money Supply M1 22255655.00 22141241.00 PKR Million Jul 2022
Money Supply M2 26798766.00 26768160.00 PKR Million Jul 2022
Money Supply M3 30371622.00 30417400.00 PKR Million Jul 2022
Loans to Private Sector 6867055.00 6927897.00 PKR Million Jul 2022
Foreign Exchange Reserves 16406.00 17426.40 USD Million Apr 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 15.00 19.50 5.75 1992 - 2022 percent Daily

News Stream
Pakistan Holds Key Rate Steady
The State Bank of Pakistan held its main policy rate at 15% on August 22nd, following a 125 bps rate hike in the previous meeting. Since last the policy rate has been raised by a cumulative 800 bps to cool the overheating economy and contain the current account deficit. The annual inflation rate in Pakistan soared to near 25% in July, the highest since 2008. The decision comes ahead of a meeting by the International Monetary Fund in Washington next week, at which the bank said it was expected to approve $1.2 billion tranche of lending. Looking ahead, the MPC intends to remain data-dependent, paying close attention to month-on-month inflation, inflation expectations, developments on the fiscal and external fronts, as well as global commodity prices and interest rate decisions by major central banks.
2022-08-22
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