SBP increases policy rate by 100bps to 13.25%

APP45-16 KARACHI: July 16 - Governor State Bank of Pakistan Dr. Raza Baqir addressing announce new Monetary Policy during press conference. APP Photo by Sahib Zaman

KARACHI, Jul 16 (APP):The State Bank of Pakistan (SBP) on Tuesday announced to increase its policy (interest) rate by 100 basic points (1%) to 13.25 percent; effective from July 17, 2019.

SBP’s Monetary Policy Committee, in its meeting here on July 16, took this decision taking into account upside inflationary pressures from exchange rate depreciation since the last MPC meeting on May 20,2019 and the likely increase in near term inflation from the one-off impact of recent adjustments in utility prices and other measures in the federal annual budget for the year 2019-20, said SBP Governor, Dr. Reza Baqir at a press conference on the bi-monthly monetary policy statement.