Karachi: The State Bank of Pakistan (SBP) on Thursday (April 07) has increased the interest rate by 250 base points, setting it to 12.25%, news sources reported. The SBP Chairman, Dr Raza Baqir, termed the decision a proactive and robust policy response to the international commodity prices.\u00a0\u00a0\u00a0<\/p>\n\n\n\n
Read:<\/strong> SBP achieves highest housing loan disbursement in February<\/a><\/p>\n\n\n\n Reportedly, in its latest Monetary Policy Committee (MPC) meeting<\/a>, the members took into consideration the significant uncertainty around the outlook for international commodity prices and global financial conditions, which were further exacerbated by the Russia-Ukraine conflict. In a statement released by the SBP handle, it was said that since the MPC’s last meeting on March 8, the rising fuel prices in international markets and the resultant inflation have pressured the SBP to take protective measures to stabilize the economy. He said that due to the high import of crude oil, the <\/a>Current Account Deficit<\/a> (CAD) is 4% of the Gross Domestic Product (GDP) which is feeding inflation.\u00a0<\/p>\n\n\n\n