State Bank of Pakistan has announced monetary policy for the next two months increasing policy rate by 100 bases points raising it from 12.25 to 13.25 percent.
Announcing the policy in Karachi, Governor State Bank Dr. Reza Baqir said that the monetary policy will be applicable from 17th July 2019 for two months.
The Governor said that the interest rate has been increased keeping in view the inflation.
He said that inflation rate is expected to remain 11 to 12 percent in the second quarter of the current financial year.
He said, however, the inflation rate would start to decrease in the latter half of the financial year and would decrease even further in the next financial year 2020-2021.