This rate has been at its highest since October 1997.
The SBP governor explained at a press conference on Monday that inflationary pressures were stronger and more persistent than anticipated.
“It is aimed at ensuring that elevated inflation does not become ingrained and that risks to financial stability are contained, thus paving the way for higher growth on a basis that is more sustainable,” reads the policy statement.
To combat rising inflation, the central bank increased the benchmark interest rate by 100 basis points (bps) today, bringing the total increase to 1,000 bps since September 2021.