Pakistan's State Bank policy rate was raised to a historic high of 22% in 2023 primarily to address:
Q1. Pakistan's State Bank policy rate was raised to a historic high of 22% in 2023 primarily to address:
Answer: Runaway inflation and exchange rate depreciation
Explanation: The State Bank of Pakistan raised its benchmark policy rate to a historic high of 22% in June 2023 as a monetary tightening measure to combat inflation that had reached above 38% and to stabilize the depreciating rupee.