SBP maintains interest rate at 22%

State Bank of Pakistan’s (SBP) Monetary Policy Committee Monday announced maintaining the status quo, leaving the key policy rate unchanged at 22%.

The MPC's decision to maintain the key policy rate — for the fifth time in a row — is in line with market expectations as high inflation persists due to the rise in energy prices.

In a concerning update, SBP Governor Jameel Ahmad stated during a press conference in Karachi that inflation remains elevated, necessitating an upward revision of the annual target to 23-25%.

The decision to keep the rate status quo is the last under the caretaker government before the country's general election next month. It also comes in the midst of Pakistan's $3 billion Standby Arrangement (SBA) with the International Monetary Fund (IMF).