SBP increases interest rate by 25 basis points to 10.25pc

Governor of State Bank of Pakistan announced Monetary Policy today (Thursday).

ISLAMABAD (Dunya News) - The State Bank of Pakistan has announced a 25 basis point increase in the policy rate, taking it to 10.25 percent with effect from February 1st 2019 as part of its new monetary policy.

The announcement was made by the Governor SBP Tariq Bajwa while introducing the new monetary policy at a news conference in Islamabad on Thursday.

Tariq Bajwa said the monetary policy committee has noted that the impact of the government’s stabilization measures is gradually unfolding and the consumers confidence is improving amid reduced economic uncertainty.

He said the fiscal deficit has witnessed downward trend while inflation rate is increasing.

“Tthe government will have to vigorously continue its endeavors to further reduce the fiscal and current account deficit to put the economy on a long term positive trajectory,” he added.

He hoped that the national exports would get a boost this year while imports will reduce.

Read full text of Monetary Policy Statement issued by the State Bank of Pakistan (SBP):