The State Bank of Pakistan (SBP) on Tuesday decided to maintain its benchmark interest rate unchanged at 22 percent.

The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC) today.

“MPC noted that Nov-23 inflation was higher than expected mainly due to gas price hike. While it may have implications for near-term inflation outlook, there are some offsetting developments that include recent decrease in international oil prices & better agriculture output,” the SBP statement noted.

The MPC said that This decision also takes into account the elevated level of core inflation which is moderating at a gradual pace.

MPC assessed that real interest rate is positive on 12-month forward-looking basis and headline inflation is expected to decline significantly in the second half of FY24.