SBP unveils new monetary policy for next two months

KARACHI (92 News) – State Bank of Pakistan (SBP) has unveiled its monetary policy for the next two months. Announcing the monetary policy decision at a news conference, SBP Governor Dr Reza Baqir said that the SBP has to keep the interest rate unchanged at 13.25 per cent, saying supply side inflation continued to exert pressure on the economy. He also said interest rate has not been changed as inflation rate is expected to remain at 11 to 12 percent this year. “The improvements in supply are likely to reduce the inflation rate,” he added. Reza Baqir said that when the monetary policy committee had decided the interest rate in July, inflation stood at 8.4 per cent. “A few months after that, inflation rate kept on increasing. It kept on increasing after that. Most recently, it stood at 12.4 per cent,” he said. The SBP governor said that the economic stability is further improving with job creation expected to rise. He said agricultural production may not meet its target this year. He said an increase of one hundred billion rupees is being made in working capital scheme.