State Bank announces monetary policy, raises interest rate to 13.25%

State Bank announces monetary policy, raises interest rate to 13.25%

State Bank announces monetary policy, raises interest rate to 13.25%

Karachi (Web Desk): The State Bank of Pakistan (SBP) on Tuesday announced monetary policy for the next two months increasing policy rate by 100 bases points raising it from 12.25 to 13.25 percent.


Announcing the policy in Karachi, SBP Governor Dr Reza Baqir said that the monetary policy will be applicable from July 17, 2019 for two months.

He said that the interest rate has been increased keeping in view the inflation.

Dr Reza said that inflation rate is expected to remain 11 to 12 percent in the second quarter of the current financial year.

“However, the inflation rate would start to decrease in the latter half of the financial year and would decrease even further in the next financial year 2020-2021,” the SBP governor added.

In May, the central bank had raised its key interest rate by 150 basis points to 12.25%, citing continuing inflationary pressure, a high fiscal deficit and recent exchange rate depreciation.