Published On: Wed, Jul 17th, 2019
Published in Category: Karachi

SBP raises policy rate to 13.25 % for next two months

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KARACHI: State Bank of Pakistan (SBP) has 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, Governor State Bank Dr. Reza Baqir said that the monetary policy will be applicable from 17th July 2019 for two months.

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

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

He said, 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 governor said that the central bank would consider revising down the interest rate if demand softened more, and inflation eased.

“The rate hike will benefit people who have parked savings in saving accounts at banks and/or in national saving schemes,” he said.

“The interest rate hike will help control dollarisation in the economy. People will prefer to keep savings in rupee rather than in dollars.”