Pakistan witnessed the highest inflation in the world in the fiscal year 2020, forcing policy makers to increase interest rate, the State Bank of Pakistan (SBP) said on Sunday.
According to the Inflation Monitor for April issued by the SBP, Pakistan witnessed highest inflation not only in comparison with the developed economies but also with emerging economies, the Dawn News reported.
The SBP pushed up interest rates to cool down the inflationary pressure during the fiscal year but high rates proved counterproductive as they further increased inflation while the private sector stopped borrowing costly money hampering industrial growth and services.