SBP raises key discount rate by 50bps to 9.5 percent
SBP has increased its discount rate by 50 basis points at 9.5 percent.
KARACHI (Dunya News) - The State Bank of Pakistan (SBP) has raised its key discount rate to 9.5 percent from 9.0 percent for September-October 2013 in line with requirements set by the International Monetary Fund.
This decision was announced by Governor, State Bank of Pakistan (SBP), Yaseen Anwar while unveiling SBP's Monetary Policy Statement at a press conference.
He appreciated the present government's economic/ fiscal policies and approach and acknowledged that it has started by taking very aggressive decisions / steps and hoped to continue moving in the right direction and bring financial discipline in the country.
While announcing SBP's monetary policy statement for next two months, Yaseen Anwar said the raise in policy rate by 50 basis points to 9.5 percent will be effective from September 16, 2013.
Yaseen Anwar said the fundamental issues for sluggish long-term economic growth in the country such as weak economic management and low productivity had largely remained unaddressed. The economy has experienced bouts of growth and stable inflation but a sustainable performance has remained largely elusive, he said.
SBP Chief said that a relentless increase in fiscal borrowings and a secular decline in both domestic and foreign investments are only symptoms of structural issues.
