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SBP Raises Interest Rate By 10.25 Percent

KARACHI: State Bank of Pakistan (SBP) on Thursday announced monetary policy February and March according to which 10.25 interest rate or 25 basis point has been kept.

Announcing the monetary policy in the press conference governor state bank Tariq Bajwa said that the monetary policy has been issued for February and March.

Governor State Bank said that current account deficit has been declining since last 12 months.

The governor SBP said that consumer price index remained above 8 in December 2018 while a sum of loans 3.7 trillion borrowed.

He informed that government loans increased in the first half of fiscal year and financial deficit shot up in comparison with last year.

He said that major industrial units increased in half of the fiscal year by 0.9 per cent, adding that economic challenges still existed, the fiscal deficit increased, inflation rate also saw hike, current account deficit is on decrease but still exorbitant.

Tariq Bajwa briefed the media that inflation rate stood at 6 in the first half of fiscal year, while it was at 3.8 in the last fiscal year of the same period.

He said that an increase of 0.25 per cent in interest rate brought in which will be applicable from February first.

The governor said that the policy rate of 10.26 per cent has been fixed after increasing 25 base points in it.