SBP increases interest rate by 25 bps, fixes it at 10.25%

ISLAMABAD (92 News) – The State Bank of Pakistan (SBP) has announced a 25 basis point increase in the interest rate, taking it to 10.25 percent with effect from February 1 as part of its new monetary policy. This was stated by the SBP Governor Tariq Bajwa while announcing the new monetary policy at a press conference on Thursday. He said that the inflation rate had increased in the country, while financial deficit had reduced. “An increase in the interest rate is aimed at stabilizing economic condition,” he maintained. The SBP governor said that the International Monetary Fund (IMF) has its own requirements. “We will look into the matter if we go to the programme,” he said. He was said that government loans had increased in the private sector. “Pakistani economy faces challenges. The current account deficit is over Rs 30 billion,” he said. SBP Governor Tariq Bajwa said that the production of major crops had increased, while big industrial units had increased by 0.9 percent. “The country currently has foreign exchange reserves worth US$ 18.2 billion,” he said. He said the monetary policy committee had noted that the impact of the government's stabilization measures is gradually unfolding and the consumers’ confidence is improving amid reduced economic uncertainty. The governor said that the government will have to vigorously continue its endeavors to further reduce the fiscal and current account deficit to put the economy on a long term positive trajectory. He hoped that the national exports would get a boost this year while imports will reduce. said that the International Monetary Fund (IMF) has its own requirements. “We will look into the matter if we go to the programme,” he said. He was said that government loans had increased in the private sector. “Pakistani economy faces challenges. The current account deficit is over Rs 30 billion,” he said. SBP Governor Tariq Bajwa said that the production of major crops had increased, while big industrial units had increased by 0.9 percent. “The country currently has foreign exchange reserves worth US$ 18.2 billion,” he said. He said the monetary policy committee had noted that the impact of the government's stabilization measures is gradually unfolding and the consumers’ confidence is improving amid reduced economic uncertainty. The governor said that the government will have to vigorously continue its endeavors to further reduce the fiscal and current account deficit to put the economy on a long term positive trajectory. He hoped that the national exports would get a boost this year while imports will reduce.