State Bank of Pakistan has announced a monetary policy and has increased main policy rate by 100 bases points from 12.25 to 13.25 percent.

Announcing the policy in a press conference in Karachi, Governor State Bank Dr. Reza Baqir said that the monetary policy will be applicable from 17th July 2019 for a period of two months.

The governor stated that the interest rate has been increased keeping in view of the inflationary pressures and the impact of the recent increase in utility prices. 

The governor was of the opinion that during the next few months, inflation will remain higher but in the second half of the fiscal year, according to projections, inflation will fall.

It is pertinent to mention that the central bank has now increased its main policy rate nine times since the beginning of last year, raising it by a total of 750 basis points in a bid to control the rising inflation, a widening fiscal deficit and pressure on the rupee.