There is no control on inflation in Pakistan! Interest rate 17 percent
Pakistan: Pakistan The economic crisis is increasing day by day. The citizens of the country are also facing difficulties in fulfilling their basic needs. Pakistan is begging for help from powerful countries around the world. In such a situation, another news has come to the fore which will shock the common people of Pakistan. The State Bank of Pakistan (SBP) on Monday raised the benchmark interest rate by 100 basis points to 17 per cent. Which is the highest since October 1997. “Inflationary pressures remain and are pervasive,” SBP governor Jameel Ahmed said at his first monetary policy press conference after taking office in August, Geo News reported.
“These interest rates, if left unchecked, could lead to higher inflationary expectations for a longer period than expected. Therefore, the Monetary Policy Committee (MPC) stressed that it is important to stabilize inflation expectations and achieve the target. Price stability to support sustainable growth in the future.” ,
Geo News reported that the central bank has increased the benchmark interest rate by 100 basis points (bps) from September 2021, taking the total increase to 1,000 bps to combat rising inflation. The governor said that despite a slight decline in November and December, the inflation rate remained high. Importantly, the core inflation rate has been rising for the last 10 months.
The value of one rupee has fallen against the dollar in Pakistan.
The rupee continues to depreciate against the dollar in Pakistan. At the same time, one rupee has reached 229.85 against the dollar. The Pakistani currency has depreciated by Rs 12 in the last three months. Talking about Indian currency, the value of one rupee here is almost three times more than the Pakistani rupee. Also, the cost of one US dollar against the Indian rupee is Rs 80.98. Pakistan is currently facing an economic crisis. The country’s foreign exchange reserves are depleting and gold reserves are depleting at the same rate. In this difficult time, Pakistan is constantly trying to get financial help from the World Bank, International Monetary Fund and many countries. But the World Bank has given them a fight. The World Bank was going to give a loan of $1.1 billion to Pakistan. But he has temporarily withdrawn his decision.