KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) in its meeting on Friday decided to raise the Policy Rate by 150 basis points (bps) to 8.75 percent. The outcome of the meeting was in line with the market expectation where a reasonable number of individuals believed that the monetary policy committee of SBP will increase the policy rate by 100 bps or above. Meanwhile, the SBP has increased MPC meetings from 6 to 8 times a year in order to make the process of monetary policy formulation more predictable and transparent in line with international best practices. This action will bring the frequency of meetings in line with comparable emerging markets. It will also help to enhance the predictability of monetary policy actions. TLTP
