Interest rate highest in 25-years
Business
Highest interest rate in recent history was 20% on October 22, 1996, lowest was 5.75% on May 23, 2016
LAHORE (Dunya Investigation Cell) - State Bank of Pakistan (SBP) has increased the interest rate by 475 basis points during the current financial year which is at the highest level in the last 25 years.
The 16th cycle of monetary policy has been going on since February 26, 1991, according to data released by SBP. Out of these 16 monetary policy cycles 8 times the monetary policy has been increased and 8 times the monetary policy has been reduced.
For the first time in the current 16th monetary policy cycle, SBP increased by 25 basis points to 7.25 percent on September 21, 2021 which was further increased by 150 basis points to 8.75 percent on November 22, 2021.
The Central Bank raised the interest rate by 250 basis points to 12.25 percent on April 8, 2022 two days before the no-confidence vote against Imran Khan was successful. On May 24, 2022 the monetary policy rate was raised by 150 basis raising the interest rate to 13.75 percent on July 13, 2022 following the formation of the PML-N government. It was raised by an additional 125 basis points to 15 percent.
SBP boosted the monetary policy by an additional 100 basis points to 16 percent on November 28, 2022.
Since Shehbaz Sharif became prime minister, the State Bank of Pakistan has gradually raised the interest rate four times from 12.25 percent to 17 percent after increasing it by 475 basis points to 17 percent. The previous 17.5 percent interest rate set by Pakistan was fixed on December 11, 1995 and it was increased to 20 percent on October 22, 1996.
According to information provided by the State Bank of Pakistan the highest interest rate in the country s recent history was 20 percent on October 22, 1996 which was maintained for 8 months ending on June 18, 1997 and the lowest interest rate was fixed at 5.75 percent on May 23, 2016 which was maintained for 20 months ending on January 29, 2018.
