The central bank jacked up the interest rate after maintaining the status quo for 20 months. Monetary Policy: Key interest rate unchanged at 5.75%GDP below targetThe central bank anticipated 5.8% growth in gross domestic product (GDP) for the full fiscal year 2017-18, which would be slightly lower than the annual target of 6%. Four key factorsFour key factors of Pakistan’s economy have recorded important changes since November 2017 impinging upon the policy rate decision. Monetary Policy: SBP leaves interest rate unchanged at 5.75%First, the rupee has depreciated by around 5%. Third, a number of central banks have started adjusting their policy rates upwards, adversely affecting interest rate differentials.

Source: The Express Tribune January 26, 2018 12:27 UTC