SBP raises interest rate to 13.25% in new monetary policy

SBP raises interest rate to 13.25% in new monetary policy
Karachi: State Bank of Pakistan (SBP) announced its monetary policy for next two months and subsequently increased interest rate by 100 basis points to 13.25%, , citing increased inflationary pressures.

The Governor of State Bank of Pakistan, Reza Baqir made the announcement while addressing a press conference.

Governor said that the new policy is in line with recently implemented tax reforms. He also assured that inflation would reduce in second half of fiscal year.

"In the next few months, due to one-time factors, inflation will be higher. In the second half of the fiscal year, according to our projections, inflation will be lower," Governor said.

The interest rate, previously, was 12.25% that has been increased by 1% in current monetary policy. SBP has increased interest rate by 5.75 % since May 2018.