| Karachi: The State Bank of Pakistan (SBP) has raised its benchmark interest rate by 300 basis points to 20%, the highest level in three decades, the news sources reported on March 2.
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The interest rate is the highest since 1996 during the height of the financial crunch. The SBP announced the interest rate change after its rescheduled Monetary Policy Committee (MPC) meeting on Thursday. In a series of tweets by the central bank, it stated that as inflation continues to soar, the readjustment of the interest rate is aimed at anchoring inflation expectations around the medium-term target of 5-7%.
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